TMI Blog2020 (10) TMI 368X X X X Extracts X X X X X X X X Extracts X X X X ..... d the evidence and has observed that quantification of disallowance is on the higher side and therefore, the disallowance has been made on adhoc basis and has been restricted to ₹ 25 Lakhs. Similarly, the Tribunal has found that the assessee has not maintained log book of the vehicles exhibiting their exclusive usage therefore, it has held that CIT (Appeals) has rightly arrived at the conclusion that possibility of user other than business purposes cannot be ruled out and therefore, 10% of the disallowance out of the total expenses has been upheld. Tribunal has held that the assessee has not been able to substantiate the claim incurred for expenditure towards business by producing vouchers. Therefore, the Tribunal has upheld the or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Facts leading to filing of the appeal briefly stated are that the assessee is a public limited company engaged in cultivation, process and export of coffee. The assessee filed the return of income on 29.10.2005 for Assessment Year 2005-06 declaring total income of ₹ 8.22,13,273/-. The Assessing Officer selected the case of the assessee for scrutiny and notice under Section 143(2) of the Act was issued. The Assessing Officer by an order dated 30.11.2007 disallowed claims viz., treating the income on sale of shade trees as business income and not a capital asset, disallowance of claim under Section 14A, disallowance of expenses in marketing division, adhoc disallowance of miscellaneous expenses at Toopran division and disallowance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... revenue has submitted that the burden is on assessee to prove the fact that the amount was expended for business purposes. It is further submitted that all the authorities have recorded findings of fact on the basis of meticulous appreciation of evidence on record and the assessee has not been able to point out any perversity in the findings of the fact. It is also urged that adhoc disallowance is permissible under the accounting principle. It is also urged that the matter stands concluded by findings of fact and no substantial question of law arises for consideration in this appeal. 5. We have considered the submissions made by learned counsel for the parties and have perused the record. After having noticed the statutory provisions, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is based on no evidence. 6. In the light of aforesaid well settled legal position, we may advert to the facts of the case. From perusal of para 22 of the order passed by the Tribunal, it is evident that the Tribunal has notice that Assessing Officer has found that details of expenditure incurred by the assessee are not directly relatable to each heads. The Assessing Officer has bifurcated the expenditure claimed by the assessee under various heads and then pointed out why expenses meant for a particular head has been debited under a different head viz., other marketing expenses. However, the assessee failed to give any reply to this aspect. The Commissioner of Income Tax (Appeals) has re appreciated the evidence and has observed that qu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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