Case Law Details
ASI Industries Ltd. Vs DCIT (ITAT Mumbai)
ITAT Mumbai held that as expenses are not specifically disputed; books of accounts admitted to be correct and payments made through banking channel, disallowing the expenses at whims and fancies is unsustainable in law. Department is required to follow the rule of consistency.
Facts-
Post search, notice u/s. 153A of the Act was issued and in response thereto assessee filed its return of income declaring income of Rs.20,34,05,145/-reiterating the same return of income filed originally. AO framed the assessment u/s. 143(3) read with section 153A of the Act at Rs.21,59,08,260/-, Rs.17,10,09,700/-, Rs.22,85,13,600/- & Rs.17,55,04,180/- for A.Y. 2011-12, 2012-13, 2013-14 & 2014-15 respectively by making additions u/s. 50C of the Act and addition on account of undisclosed receipt as per form 26AS, disallowances of compensation paid on taparies, disallowance of commission paid on sales, disallowance of expenses claimed on vehicles, disallowance of foreign travelling expenses and disallowance out of raising and mining expenses.
CIT(A) partly allowed the appeal. Being aggrieved, the present appeal is preferred by the assessee.
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