ACIT Vs Proptiger Realty Pvt. Ltd. (ITAT Delhi)
ITAT Delhi held that CIT(A) wrongly deleted addition made by AO towards one fifth of the expenses since assessee failed to produce documentary evidences of the expenses. Accordingly, appeal of the revenue allowed.
Facts- Present appeal has been preferred by the revenue mainly contesting that CIT(A) has erred in law and on facts in deleting the addition Rs. 9,31,13,272/- made by AO on account disallowance of 1/5th of expense ignoring the fact that assessee had failed to produce documentary evidences of the expenses despite of providing numerous opportunities during the assessment proceedings. Further, it is also contested that CIT(A) has erred in law in deleting the addition of 20% expenses by ignoring the fact that AO has clearly mentioned in his remand report that some of invoices produced by the assessee as proof in support of its contention, were found unsigned and also the quantum of expenses claimed by the assessee was much more than the bills & invoices.
Conclusion-Held that CIT(A) has called for the remand report from the AO. The AO has made the addition on the one fifth of the expenses which was rightly added by the AO. We find that CIT(A) has wrongly deleted the addition made by the AO. In view of the above discussion the appeal of the revenue is liable to be allowed ex-parte for statistical purpose. In the result the appeal of the revenue is allowed for statistical purpose.
