TMI Blog2021 (10) TMI 827X X X X Extracts X X X X X X X X Extracts X X X X ..... r / assortment charges - HELD THAT:- Except for general observations, no specific defects have been pointed out by Ld. AO in sample documents produced by the assessee. Similar expenditure incurred by the assessee in AYs 2012-13 2014-15 has been accepted. The complete details of the expenditure along with relevant ledgers were furnished by the assessee during assessment proceedings - There is no dispute about genuineness and admissibility of claim of expenses. Regarding the observation of Ld. AO that there was drastic increase in such expenses during the year, the same stood explained by assessee s reply dated 19/01/2016 wherein it was submitted that the expenditure increased due to change in manufacturing pattern of the assessee which wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15/09/2021, has filed an additional ground challenging the disallowance made u/s 14A. Since the same arises out of the assessment order, it is admitted in term of the decision of Hon ble Apex Court in National Thermal Power Corporation Ltd. V/s CIT (1998; 229 ITR 383). The assessee seeks deletion of disallowance u/s 14A in terms of the decision of Hon ble Apex Court in Pr. CIT V/s Oil Industry Development Board (2019; 103 Taxmann.com 326) as well as CIT V/s Chettinad Logistics (P) Ltd. (2018; 95 Taxmann.com 250) on the ground that no exempt income was earned by the assessee during the year. 3. Having heard rival submissions and after careful consideration of material on record, our adjudication to the subject matter of appeal would be as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd in some cases, the payees could not be verified. Accordingly, Ld. AO estimated an adhoc disallowance of 10% against the same. The Ld. CIT(A) confirmed the same since the assessee did not appear during appellate proceedings. 5.2 The Ld. AR assailed the disallowance by submitting that the Books of Accounts have not been rejected and the adhoc disallowance thus made would not be sustainable in law as per the decision of Hon ble Delhi High Court in PCIT V/s R.G. Buildwell Engineers Ltd. (99 Taxmann.com 283; SLP dismissed which is reported at 259 Taxman 370). The Ld. AR submitted that the nature of expenditure was duly explained before Ld. AO and ledgers were produced along with vouchers. No specific defect has been pointed out in the docu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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