TMI Blog2021 (2) TMI 794X X X X Extracts X X X X X X X X Extracts X X X X ..... impugned assessment year, the total expenses so claimed comes to ₹ 9,28,094/- on a total revenue receipts of ₹ 1,98,05,868/- which comes to 4.66% of the total expenses. Therefore, find merit in the arguments of the Ld. Counsel for the assessee the expenses so debited in the profit and loss account as reasonable. Coordinate Bench of the Tribunal under identical circumstances in one of the sister concerns namely Nagesh Knitwears Pvt. Ltd. has deleted such disallowance of expenses. Since the books of accounts of the assessee has been accepted by the AO and no other disallowance except these expenses has been made and considering the fact that the expenses so claimed by the assessee appears to be reasonable, as compared to such e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not produced Difference of col. (2-3) 1 2 3 4 5 Advertisement ₹ 68,756/- ₹ 68,756/- ₹ 68,756/- General expenses ₹ 3,79,185 ₹ 3,79,185/- ₹ 3,79,185 Machinery Repair ₹ 1,851/- ₹ 1,851/- ₹ 1,851/- Rebate and discount ₹ 2,76,920/- ₹ 2,76,920/- ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accounts of the appellant for the assessment year under appeal is the same as during the last four decades ever since the business was set up in the year 1981 and there has been no change at all in this regard. The appellant has maintained regular books of accounts in the course of its business activities which are correct and complete in all respects, and barring this disallowance, the same have been accepted after thorough examination by the Ld. Assessing Officer. If we go by the judgment of the authorities below, it would clearly imply that they have considered total expenses of ₹ 1,76,842/- under seven different heads as reasonable against gross revenue receipts (business operations) of ₹ 1,98,05,868/-. Such a finding of fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment year 2013-14, he submitted that the assessment was completed u/s 143(3) of the I.T. Act 1961 and all the expenses claimed in the P L account were accepted by the AO. He submitted that in that year the percentage of expenses to sales was 8.06% whereas in the current year the expenses are 4.66% of the total revenue receipts. He submitted that even if the books of accounts are not correct and complete still the expenses as claimed vis a vis the gross receipts from business operations are so reasonable that the same cannot be viewed as excessive or unjustified under any circumstances. Referring to the case of the Tribunal in the case of the sister concern namely Nagesh Knitwears Pvt. Ltd. he submitted that the Coordinate Bench ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was no change at all in this regard. It is also his submission that the expenses claimed during the year is in consonance with the turnover of the assessee and is much less than the expenses claimed for assessment year 2013-14 and the AO for the assessment year 2013-14 has accepted such expenses in the order passed u/s 143(3) of the Act. I find some force in the above arguments of the Ld. Counsel for the assessee. Admittedly. the assessee has maintained regular books of accounts in the course of its business activities and the same has not been rejected and no other additions have been made by the AO barring this disallowance. From the details filed by the assessee, I find that no addition or disallowance out of expenses under this head ..... X X X X Extracts X X X X X X X X Extracts X X X X
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