TMI Blog2022 (3) TMI 655X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee and that such imports are based starting point for appropriate inquiry which in this case made and explained by the assessee reconciliation to that want also made. There is nothing more than this information input which has been put against the assessee. We have noted that the audited books of accounts and reconciliation and the various entities contract amount offered for tax over a period time. Only difference between the contract value of each party matches over a period of time irrespective of the year offered by the assessee and therefore, grievance of the Revenue that the assessee has not offered correct income is fully explained by the assessee by filing the chart. The income offered for both the parties, in respect of which the addition made almost reconciled and offered for in the regular books, AO has not rejected the book results. Therefore, it is not required to disturb the books result which has been audited by an independent auditor. Thus, the addition made for an amount of ₹ 18,78,750/-, ₹ 15,23,978/- totaling to ₹ 34,02,728/- as per ground No. 1 are deleted on the basis of finding discussed herein above. For lumpsum disallowan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. CIT(A) erred in law as well as on the facts of the case in confirming the lumpsum disallowance of ₹ 2,00,000/-. The disallowance so made and confirmed by the CIT(A) being totally contrary to the provisions of law and facts of the case, kindly be deleted in full. 3. The ld. AO further erred in law as well as on the facts of the case in charging interest u/s 234A, 234B, 234C 234D of the Act and as also in withdrawing interest u/s 244A of the Act. The appellant totally denies its liability of charging and withdrawal of any such interest. The interest so charged/withdrawn, being contrary to the provisions of law and facts, kindly be deleted in full. 4. The appellant prays your honour indulgences to add, amend or alter of or any of the grounds of the appeal on or before the date of hearing. 4. The relevant facts, as culled out from the records is that, the assessee company is engaged in the business of labour contractor supplier with machinery under affordable housing policy for the year under consideration. The assessee company filed its return of income declaring income at ₹ 5,21,007/- on 30.03.2015 through e-filing portal and the same was processe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n made by the Assessing Officer is ad-hoc disallowance of ₹ 2,00,000/- out of ₹ 2,13,510/- on account of travelling expenses, ₹ 2,84,510/- on account of consumable expenses, ₹ 5,42,280/- on account of conveyance Expenses, ₹ 5,45,800/- on account of diesel expenses and ₹ 4,54,050/- on account of staff welfare expense. While making disallowance AO contended that the expenses incurred on self-made vouchers considering the nature of the expenses revenue leakage/personal use of the same and therefore, he has considered to disallow a lumpsum amount of ₹ 2,00,000/- out of the these expenses. 7. The ld. CIT(A) has also confirmed the finding of the AO in respect of the lumpsum addition of ₹ 2 lac without giving any separate findings. 8. Being aggrieved from the order of the ld. CIT(A), the assessee has moved an appeal before the Co-ordinate Bench wherein the contentions of appellant as appearing in paper book are as under:- 1. Accounts not rejected by the AO: At the outset it is submitted that the assessee has maintained proper books of account which are duly audited u/s 44AB of the IT. Act. Complete books of accounts along with pur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed upon by the ld. DR. As regards, the addition of ₹ 2,00,000/-, the ld. DR has relied upon and vehemently argued that the said disallowance of ₹ 2,00,000/- is required to be sustained as per the findings of AO CIT(A). 10. We have considered the rival submissions. The ld. AR of the assessee argued that merely there is a difference in the 26AS and the books results, there cannot be an addition to returned income the books of account of the assessee duly audited. AO has not found any single defect in the books of accounts that has been produced before the Assessing Officer. The assessment completed u/s 143(3) of the Act. Even, the inquiry made u/s 133(6) has properly been explained by the AR of the assessee in the assessment proceedings and reply is reproduced in the assessment order. The main contentions is that the other party has booked the expenses, that cannot be the reason while making the assessment in the case of the assessee, when the contract receipt got reflected in the subsequent year as per regular method of accounting followed. Surprisingly one addition is based on 26AS amount and amount in books and another from the expenses booked by the assessee an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1,60,00,000 1,60,00,000 - 11. The income offered for both the parties, in respect of which the addition made almost reconciled and offered for in the regular books, AO has not rejected the book results. Therefore, it is not required to disturb the books result which has been audited by an independent auditor. Thus, the addition made for an amount of ₹ 18,78,750/-, ₹ 15,23,978/- totaling to ₹ 34,02,728/- as per ground No. 1 are deleted on the basis of finding discussed herein above. 12. As regards the lumpsum disallowance of ₹ 2,00,000/- , the observe of the ld. CIT(A) at para 5.3 is as under:- 5.3 I have gone through the assessment order, statement of facts, grounds of appeal and written submission carefully. In view of the facts discussed by the AO in the assessment order, I am of the considered view that the AO has been most reasonable in making disallowance of ₹ 2 lac only out of the expenses debited under the head travelling expenses (₹ 2,13,510), consumable expenses (₹ 2,84,510/-), conveyance expenses (₹ 5,42,280) diesel expenses (₹ 5,45,800) and staff welfare expenses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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