Case Law Details
Seward Exports Pvt Ltd. Vs ACIT (ITAT Jaipur)
t there are inconsistencies in the findings of the ld. CIT(A), where at first place, he has held that the Assessing Officer has not able to bring any example of specific disallowable expenses in case of loading and unloading expenses and under the similar facts pattern where the disallowances have again been made by the Assessing Officer in respect of other expenses without bringing any specific disallowable expenses, he has sustained these disallowances. Therefore, on this account and in absence of the specific finding recorded by either of the authorities that the expenses have not been incurred wholly or expensive for the purpose of business or are bogus in nature merely because expenses incurred in cash and supported by self made vouchers cannot be a basis for making the disallowance in the hands of the assessee. The ld DR has contended that only 5% of the expenses have been disallowed, however, if we look at the basis of such disallowance which is cash payment and in such a situation, as a percentage of expenses incurred in cash, the disallowance comes to 29% as contended by the ld AR. In our view, the issue is not about the percentage of expenses rather the real issue is whether the expenses so disallowed have been incurred for the purposes of business or not. There is no finding by either of the authorities that the expenses have not been incurred for the purposes of business or the test of business expediency has not been satisfied. We are therefore of the considered view that the expenses have been disallowed for the sake of making the disallowances without bringing on record any specifics of disallowable expenses as not incurred for the purposes of business and therefore, the disallowances so made are clearly ad-hoc in nature which cannot be sustained in the eyes of law and the same are hereby directed to be deleted.
FULL TEXT OF THE ORDER OF ITAT JAIPUR
This is an appeal filed by the assessee against the order of ld. CIT(A), Kota dated 11.02.2019 wherein he has confirmed various additions made by the Assessing Officer relevant for A.Y 2014-15.
2. The relevant facts as emerging from the records as well as the findings of the ld. CIT(A) which are under challenge before us read as under:-201
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