9911796707
TMI Blog2019 (9) TMI 1514X X X X Extracts X X X X X X X X Extracts X X X X ..... come Tax Act, 1961. Appellant prays that ad hoc addition so made is not in accordance with law and deserves to be deleted. 1.1. That, ld. CIT(A) erred in confirming the action of ld. A.O. in making ad hoc addition without pointing out any single instant where the expenses claimed were in excessive or nor for the purposes of business. 2. That the appellant craves the right to add, delete, amend or abandon any of the grounds of appeal either before or at the time of hearing of appeal." 2. The assessee is a partnership firm and engaged in the business of wholesales cum retails in the trade of fertilizers. The assessee filed its return of income U/s 139(1) of the Income Tax Act, 1961 (in short, the Act) on 28/11/2014 declaring total income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rely because G.P. is reduced due to increase in the turnover. Once the N.P. is higher than the preceeding year, the ad hoc disallowance is called for. 4. On the other hand, the ld DR has relied upon the orders of the authorities below and submitted that when the assessee has failed to produce supporting evidence of expenditure then the disallowance made by the A.O. of Rs. 1.50 lacs is reasonable and proper. 5. I have considered the rival submissions as well as relevant material on record. The A.O. has given reasons for making ad hoc disallowance of Rs. 1.50 lacs that too as a lump sum trading addition as the freight expenses were not fully supported by proper bills and vouchers. Though the term used by the A.O. in the assessment order bei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver the discrepancies mentioned by the A.O. in the assessment order. Accordingly, the ground of appeal on this issue is dismissed." If certain claim of expenditure is not found to be incurred wholly and exclusively for the business purpose of the assessee then the same is liable to be disallowed. However, if the expenditure incurred by the assessee is found for the business purpose of the assessee then due to certain irregularity in maintaining the supporting evidence an ad hoc disallowance is not called for. Accordingly, without specifying the instance of the expenditure, which is either excessive or found not incurred for the business of the assessee, the action of the A.O. in making ad hoc disallowance and confirmed by the ld. CIT(A) is ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
