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TMI Blog2023 (7) TMI 1413X X X X Extracts X X X X X X X X Extracts X X X X ..... and facts of the case while disallowing expenses amounting to Rs. 100000/-(Rs 1 lac) out of expenses of the office total expenses while specifying any amount and assigning any reason. 3. That the appellant craves leave to add, amend or delete any of the grounds of appeal at the time of hearing of appeal or before the appeal is being heard. 2. None has appeared on behalf of the assessee nor any adjournment application has been filed. On perusal of records, it is noted that the appeal was filed way back in the year 2019 and the matter has been adjourned from time to time on account of various reasons. It was, accordingly, decided that no useful purpose would be served in adjourning the matter any further and based the material available ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there is no narration vis-à-vis the other withdrawals made from time to time and therefore, where all the narrations were provided corresponding to the withdrawals relating to construction, the same were allowed by the AO and the remaining withdrawals were held to be not sufficiently explained in absence of any nexus so established by the assessee in terms of the amount so withdrawn and the investments made in the construction of the building. Accordingly, out of Rs.31,06,000/-, cash withdrawals of Rs.11,50,000/- and whole of the amount of Rs.22 lacs withdrawn during the Financial Year 2011-12 were not considered eligible as cost of construction/improvement while working out the Long Term Capital Gain and an addition of Rs.25,04,534 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pport of his contentions. It was further held by the ld. CIT(A) that where all the narrations towards the cash withdrawals were sufficiently mentioned, the AO has duly given benefit to the assessee, however, where there was no clarity regarding purpose of the withdrawal, the AO has rightly restricted the benefit to the assessee. It was, accordingly, held that the assessee has failed to produce conclusive documentary evidence which could link the withdrawals made for investment in construction/improvement of the building. It was further held by the ld. CIT(A) that the assessee could have given Valuation Report by any approved Valuer in support of his contention of cost of construction and cost of improvement. However, the assessee has not fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vouchers supporting the construction activities, the valuation report would be germane and relevant to determine the appropriate cost of construction which can be allowed to the assessee, we admit the same and deem it appropriate to set aside the matter to the file of the AO to examine the Valuation Report and decide the matter afresh after providing reasonable opportunity to the assessee. In the result, the ground of appeal is allowed for statistical purposes. 10. In ground No.2, the assessee has challenged the sustenance of disallowance of Rs.1 lakh out of various expenses claimed by the assessee. 11. In this regard, briefly the facts of the case are that in the course of assessment proceedings, the AO observed that the assessee has dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so made by the AO deserve to be deleted. 13. The ld. CIT(A) confirmed the addition holding that no satisfactory explanation has been submitted by the assessee and accordingly, the disallowance of Rs.1 lac under different heads of expenditure was confirmed. Against said findings and directions of the ld. CIT(A), the assessee is in appeal before us. 14. During the course of hearing, ld. DR is heard who has relied on the order of the lower authorities. 15. On perusal of the orders of both the parties, we find that this is clearly a case of adhoc disallowance which has no rationale and sound basis as no finding has been recorded by the AO that the assessee has claimed any bogus LPG/Diesel expenditure or the expenditure has not been incurred ..... X X X X Extracts X X X X X X X X Extracts X X X X
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