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TMI Blog2024 (3) TMI 1259X X X X Extracts X X X X X X X X Extracts X X X X ..... ] qua the assessment year 2017-18 on the grounds inter-alia that :- "Whether on facts and circumstance of the case and in law The Ld.CIT(A) has erred in deleting addition made by the Assessing Officer of Rs. 7,85,54,891/-being 10 percent out of various expenses. The appellant crave leave to add, amend, alter and/or vary any of the grounds of appeal before or at the time of hearing." 2. Briefly stated facts necessary for consideration and adjudication of the issues at hand are : assessee's return of income for the year under consideration declaring total income at Rs. 3,22,87,840/- was subjected to scrutiny. Assessing Officer (AO) during the scrutiny proceedings noticed that the assessee has claimed direct expenses to the tune of Rs. 78 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see to the tune of Rs. 78,55,48,913/- @10% of the total expenses. It is also not in dispute that books of assessee are duly audited under section 44 AB of the Act. It is also not in dispute that the AO while making adhoc disallowance has not rejected the books of account. 6. In the backdrop of the aforesaid undisputed facts the Ld. CIT(A) has deleted the addition by returning following findings: "4.3 I have carefully considered the submission put forth along with supporting documents contain in paper book furnished, perused the facts of the case including impugned assessment order and other material brought on record. I found from the submission of the appellant as well as from assessment order that during the assessment proceedings, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oc disallowance of expenses hardly holds any ground. 4.4 The appellant has further pleaded for a comparative analysis of previous years income and expenses. It can be observed from the comparative statement as well as assessment order of A.Ys 2014-15, 2015-16, 2016-17, 2018-19 and 2019-20, there were no disallowances of expenses from the computation total income of the appellant. This means that expenses claimed by the appellant were allowed in preceding and subsequent assessment years. This fact, though not a conclusive argument in support of the appellant, further substantiate the claim of the assessee that the ad-hoc disallowance was arbitrary and without any concrete basis and findings. Books of account of the appellant is duly audite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rlier assessment orders. Even if the submission of the assessee may be considered not complete or considered as insufficient evidence, it will not grant a right to the AO to make an ad-hoe disallowance. What the AO should have done was to ask for specific evidence before making a decision in such specific instances. ... ... 4.8 In the light of above discussion and finding and on going through the detailed facts and circumstances of the case, and also considering the decision of the Hon'ble Apex Court, referred above in para 47, I am of the considered opinion that the ad- hoc disallowance made by the AO is notjustified and needs to be deleted. Thus, the additions of Rs. 7,85,54,891/made by the AO on ad hoc basis is hereby deleted, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relevant documents to allow the expenses claimed by the assessee qua freight, transport, coolie and cartage, loading/unloading charges, godown expenses, other expenses, brokerage/commission on purchases etc. 9. No doubt the relevant evidence has not been produced by the assessee before the AO hence he proceeded to make the adhoc disallowance. However now the Ld. CIT(A) during the appellate proceedings has duly perused the bills, vouchers, balance sheet, tax audit report, ledger copy and bank statement etc. qua the expenses claimed by the assessee in the light of the fact that the assessee is having turnover of Rs. 600 crores and duly audited books of accounts of the assessee have not been rejected by the AO and proceeded to delete the adho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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