TMI Blog2024 (4) TMI 710X X X X Extracts X X X X X X X X Extracts X X X X ..... d assessee shall not be eligible for deduction if such contribution to respective fund is remitted beyond the due date prescribed therein. Consequently such delayed remittance shall not be eligible to shelter under the extended period as prescribed by section 43B of the Act. In view thereof, the disallowance towards delayed remittance of ESIC made in the assessment and confirmed in appellate proceedings stands errorless. The ground raised challenging the disallowance thus stands meritless, hence dismissed. Ad-hoc disallowances - ingenuine sale incentive/expenditure - HELD THAT:- On careful consideration of records it transpired that, neither of the lower tax authorities had pin-pointed any voucher where genuineness of sale incentive/expendi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wance is arbitrary and could by no means be held to be justified in given situation where books of accounts are subjected to audits. Hon'ble High Court of Madras in V.C. Arunai Vadivelan [ 2021 (2) TMI 501 - MADRAS HIGH COURT ] wherein if the AO had any doubt with regard to the genuinity of any one of the vouchers produced he could have drawn sample vouchers and called upon the assessee to establish its genuineness. Without doing so, making an adhoc disallowance by not specifically assigning any reason to a voucher or bunch of vouchers is not legally tenable. Thus in the absence of clear finding about non-genuineness or fictitiousness of portion of expenditure disallowed, we find no favour with the arbitrary view of the tax authorities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... confirmed the first two disallowance on equi-reasons. 2.3 Further aggrieved assessee came in present appeal with two substantive grounds as laid in appeal memo; 1) On the facts and circumstances of the case and in law, the AO grossly erred in making and the CIT(A) grossly erred in confirming addition of Rs. 1,40,291/- being 25% of expenses incurred on incentives paid to sales staff on mere assumptions, ignoring the fact that the books of accounts of the Appellant are duly audited and that the expenditure were incurred wholly and exclusively for the business of the appellant. The expenditure thus deserves to have been allowed in toto as claimed and the additions so made and confirmed to be deleted in the interest of natural justice. 2) On t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s 37(1) of the Act without calling for disallowance. Per contra, the Ld. DR strongly relied on the orders of tax authorities below. 4. We have heard the rival contentions, subject to rule 18 of ITAT-Rules 1963 perused the material placed on record and considered the facts of the case in the light of settled legal position which are forewarned to rival parties. 5. We shall first deal with ground number 2 relating to disallowance of ESIC contribution. It an admitted fact that due ESIC contribution is remitted beyond the due date prescribed under the relevant law. As rightly submitted by the Ld. AR that, this issue of disallowance has been settled by the Hon ble Apex Court in Checkmate Services (supra) wherein their Hon ble Lordship have hel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authorities to arrive at this logic of subscribing ad-hoc disallowances. 6.2 Evidently, there have been no clear findings as to number of vouchers requiring denial of allowances with the amount of expenditure and nature of defects therein or therewith. If the Ld. AO had any doubt with regard to the genuinity of any one of the vouchers produced he could have drawn sample vouchers and called upon the assessee to establish its genuineness. Moreover department could not bring out any deprecative material on record to substantiate its conclusion as logical. We couldn t even remotely see there is any mention of rationale in arriving at the percentile of disallowance in the present case. For the reasons we find force in the claim of the assessee t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
