TMI Blog2020 (5) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... es - HELD THAT:- Assessee has shown car hiring income to the amount of ₹ 3,34,626/- in the Schedule K placed in the paper book as business income, therefore, it is not justified to disallow 100% expenses incurred under the head travelling and food expenses. Considering the car rental income and the income earned from business we are of the view that it is reasonable to restrict the disallowance to the extent of 30% of such expenses for want of relevant proper bill and voucher. Accordingly, we restrict the disallowances under the head travelling and fuel expenses therefore, this ground of the appeal is allowed. Addition u/s. 2(22)(e) - HELD THAT:- During the course of appellate proceedings before us, the ld. counsel has contended ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edi, Sr. D.R. ORDER PER : AMARJIT SINGH, ACCOUNTANT MEMBER:- These two appeals are filed by the assessee against the decision of ld. CIT(A) of two different assessment years in sustaining the various disallowances made by the assessing officer. Since the common issue on identical facts are involved in these appeals therefore these appeals are adjudicated together by this common order. ITA No. 1551/Ahd2015 2. The fact in brief is that return of income declaring income of ₹ 66,65,590/- was filed on 28th Sep, 2011. The case was subject to scrutiny and notice u/s. 143(2) of the act was on 4th July, 2013. The assessment u/s. 143(3) of the act was finalized on28th Feb, 2014 and total income was assessed at ₹ 1, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ingly, this ground of appeal of the assessee is dismissed. Ground No. 2 (Disallowance of ₹ 2,36,986/- u/s. 37 of the Act) 6. During the course of assessment, the assessing officer noticed that assessee has claimed total amount of ₹ 2,36,986/- as travelling and vehicle expenses u/s. 37 of the act. On query, the assessee has explained that he has incurred travelling and vehicle expenses for purpose of business and renting car to India Cement Ltd. 7. The assessee has not agreed with submisisonfo the assessee stating that no evidence were produced. Therefore, claim of the assessee was disallowed. 8. Aggrieved assessee has filed appeal before the ld. CIT(A). The ld. CIT(A) has dismissed the appeal of the assessee statin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... justified to disallow 100% expenses incurred under the head travelling and food expenses. Considering the car rental income and the income earned from business we are of the view that it is reasonable to restrict the disallowance to the extent of 30% of such expenses for want of relevant proper bill and voucher. Accordingly, we restrict the disallowances under the head travelling and fuel expenses to ₹ 72,000/-, therefore, this ground of the appeal is allowed. Ground No. 3(Addition of ₹ 39,527 u/s. 2(22)(e) of the act) 11. During the course of assessment, the assessing officer noticed that assessee had received loan/advances to the total amount of ₹ 56,89,212/- from the company M/s. Omkara Concrete and Machineries ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... number of entries reflected in the ledger account of the company as pointed out by the ld. counsel as adjustment entries. After considering the nature of transaction being running account as of the nature of adjustment entries, we delete the impugned addition. Therefore, this ground of appeal of the assessee is allowed. ITA No. 735/Ahd/2015 14. This appeal of the assessee is pertained to assessment year 2012-13 based on similar fact and issues as adjudicated above in the appeal of the assessee for assessment year 2011-12 vide ITA 1551/Ahd/2015 above in this order. Ground No. 1 (disallowance of Commission expenses of ₹ 13,550/- 15. As adjudicated above in this order, the assessee has failed to furnish the basic detail i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... From M/s. Omkara Concrete and Machineries Pvt. Ltd ₹ 13,59,943/-, From M/s Omkara Infowab Pvt. Ltd. ₹ 59,000/- 19. The ld. CIT(A) has confirmed the addition to the amount of ₹ 14,06,966/- comprising addition of ₹ 13,59,943/- pertaining to the amount received from M/s. Omkara Concrete and Machineries Pvt. Ltd and ₹ 47023/- from M/s Omkara Infowab Pvt. Ltd. After applying the finding on similar issue and identical facts as cited above vide ITA No. 1551/Ahd/2015 the disallowance in respect of M/s. Omkara Concrete and Machineries Pvt. Ltd. is deleted as it has been seen from the ledger of the company that there were large number of transactions in the form of accommodation adjustment entries. However, in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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