Case Law Details
TUV India Pvt. Ltd. Vs DCIT (ITAT Mumbai)
No defects in the books of accounts were brought on record by the authorities below nor books of accounts were rejected by the authorities below. If the authorities were not satisfied with aforesaid details , then they ought to have called for further details. In the preceding assessment year i.e. ay: 2010-11 and in immediately succeeding assessment year i.e. ay: 2012-13, no adhoc disallowances of expenses were made by the AO in an assessment framed u/s. 143(3) of the Act. The assessment orders for ay: 2010-11 and ay: 2012-13 are placed in file. The assessee has discharged its onus by bringing on record complete details of the expenses incurred by it albeit the same was brought on record during the course of appellate proceedings before learned CIT(A)/remand proceedings conducted by the AO under directions of learned CIT(A). The powers of learned CIT(A) are co-terminus with powers of the AO. No enquiries were conducted by the AO/learned CIT(A) even during appellate/remand proceedings . The books of accounts were not rejected by authorities below nor any defect is pointed out by the AO/learned CIT(A) in the books of accounts maintained by the assessee. There is no allegation by Revenue that the assessee claimed any bogus expenses or any attempt is made to defraud Revenue. Under these circumstances keeping in view factual matrix of the case, we are of the considered view that aforesaid adhoc disallowance of expenses under various heads of expenses to the tune of 10% of the total expenses incurred by the assessee under these heads of expenses is not warranted and we order deletion of the said adhoc disallowance of expenses.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal, filed by assessee, being ITA No. 6628/Mum/2017, is directed against appellate order dated 05.09.2017 in appeal no. CIT(A) -22/DCIT-10(3)/IT-314/ 13-14, passed by learned Commissioner of Income Tax (appeals)-24, Mumbai (hereinafter called “the CIT(A)”), for assessment year(ay) 2011-12, the appellate proceedings had arisen before learned CIT(A) from assessment order dated 29.01.2014 passed by learned Assessing Officer (hereinafter called “the AO”) u/s 143(3) of the Income-tax Act, 1961 (hereinafter called “the Act”) for ay:20 11-12.
2. The grounds of appeal raised by assessee in memo of appeal filed with the Income-Tax Appellate Tribunal, Mumbai (hereinafter called “the tribunal”), reads as under:-
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