9911796707
TMI Blog2022 (6) TMI 1104X X X X Extracts X X X X X X X X Extracts X X X X ..... a part of the addition to the extent of Rs. 2,19,785/- out of Rs. 3,29,677/- made by Ld. ITO on the ground of non-availability of vouchers etc. in support of expenses claimed in books of account. 2. The worthy CIT(A) has erred in partly upholding the action of Ld. ITO as stated in (1) above without appreciating the fact that Ld. ITO has not specifically pointed to any particular voucher or documentary evidence not made available to him. 3. On circumstances and facts of the case, the worthy CIT(A) has erred in not appreciating the fact that the additions made by Ld. ITO were made in a routine & perfunctory manner without application of mind & deserved to be deleted in toto and not in part. 4. On circumstances and facts of the case, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been adequately deducted. 7. The appellant craves leave to add, alter, modify or modify the grounds of appeal." 3. The facts giving rise to the present appeal are that the assessee is a partnership firm has been carrying out its business under the name of 'M/s. Kashmir Motors' for the year under consideration. The assessee filed its return of income through electronic mode declaring an income of Rs. 6,89,072/-. The case was selected for scrutiny assessment under the 'CASS', thereafter the Assessing Officer proceeded to frame assessment u/s. 143(3) of the Income Tax Act, 1961. By framing the assessment, the Assessing Officer made ad-hoc disallowances in respect of vehicle maintenance, loading and unloading expenses etc. @ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee for asstt. year 13-14: S. No. Particulars Amount 1 Travelling & Tours 209,275.00 2 Loading and Unloading 301,318.00 3 Vehicle Maintenance 396,108.00 4 Misc. expenses 23,359.00 5 Shop expenses 190,874.00 6 Telephone Expenses 81,834.00 7 Staff Welfare Expenses 53,345.00 8 Electricity & water exp 31,223.00 9 Discount allowed 99,903.00 10 Repair & Renewals (Bldg) 145,656.00 11 Freight and carriage Outwards 364,673.00 12 Branch office expenses 300,280.00 Total 2,197,848.00 Addition to income @ 15% 329,677.20 The Ld. ITO had made the above addition on the grounds that the assessee was not able to substantiate and justify the decrease in Net Profit to 0.18% for AY 13-14 as compared to the rate of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AY 12-13 & AY 13-14, the above profit from sale of land should have been excluded to reflect a true and fair view of the affairs of business. A genuine comparison of figures reproduced below reveals that instead of decrease in net profit, the assessee has actually declared a higher rate of net profit from .07% to 0.19% in impugned assessment year. Particulars A.Y. 12-13 A.Y. 13-14 Net Profit 11,49,580.39 6,89,071.98 Less Profit on Sale of Land 9,24,635.00 - Net profit excluding profit on sale of land 2,24,945.39 6,89,071.98 Sales 30,32,85,503.40 36,96,14,635.18 Net profit %age including profit on sale of land 0.38% 0.19% Net profit %age excluding profit on sale of land 0.07% 0.19% However, without giving adequate con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2% 120,917.00 0.05% - 0.03% In fact expenses have Reduced 7 Staff Welfare Expenses 53,345.00 0.01% 152,913.00 0.06% - 0.05% In fact expenses have Reduced 8 Electricity & water exp 31,223.00 0.01% 18,246.00 0.01% 0.00% No Change 9 Discount allowed 99,903.00 0.03% 533,668.00 0.20% - 0.17% In fact expenses have Reduced 10 Repair & Renewals (Bldg) 145,656.00 0.04% - 0.00% 0.04% Remained constant 11 Freight and carriage Outwards 364,673.00 0.10% 441,670.00 0.16% - 0.06% In fact expenses have Reduced 12 Branch office expenses 300,280.00 0.08% - - - No branch office expense in AY 13-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing and unloading, vehicle maintenance, miscellaneous expenses, discount allowed, staff welfare, freight and carriage, electricity and water expenses. The addition has been made by the AO on the ground that some of the expenses claimed were not supported with bills/vouchers, most of them have been paid in cash and element of personal usage cannot be ruled out. The disallowance has been made at the rate of 15% of the total expenses claimed. 4.3. The appellant has stated that the expenses have been incurred for the business purposes only, hence disallowances made on the basis of estimation is on higher side. AO has not pointed out any specific defect in the bills and vouchers. The appellant has stated that books of account have been duly ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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