Case Law Details
Devyani Food Industries Ltd. Vs ACIT (ITAT Delhi)
The learned CIT(A) noticed that the assessee has not filed detail of expenses before the Assessing Officer, still he restricted the disallowance for other expenses to 10% of the total expenses without any justification and only on the basis of the magnitude of the disallowance. The learned CIT(A) should have examined the books of accounts along with bills and vouchers to decide the issue of disallowance of other expenses and depreciation. The action of the learned CIT(A) of sustaining the disallowance on ad-hoc basis is not justified. In the facts and circumstances of the case, we feel it appropriate to restore the matter back to the file of the Assessing Officer for deciding afresh with the direction to the assessee to produce all the necessary documents in support of its claim including books of accounts and bills and voucher in relation to other expenses and additions to assets for justifying the claim of the depreciation. It is needless to mention that the assessee shall be afforded adequate opportunity of being heard. Accordingly, the grounds raised by both the parties are allowed for statistical purposes.
FULL TEXT OF THE ITAT JUDGEMENT
These cross appeals by the assessee and the Revenue are directed against order dated 08/06/2015 passed by the learned Commissioner of Income-tax (Appeals) -24, New Delhi [in short “the Ld. CIT(A)”] for assessment year 2012-13. Both the appeals being connected with the same assessee and common issues involved, same were heard together and disposed off by way of this consolidated order for sake of convenience.
2. The grounds of appeal raised by the assessee in ITA No. 4973/Del/20 15 are reproduced as under:
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