M/S. SIDDAPUR DISTILLERIES LTD.,SIDDAPUR vs. ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE-2(1)-TAX OFFICER, CIRCLE, HUBLI

The only issue in this regard is with regard to disallowance of Rs.42,11,036/- incurred towards Repairs and Maintenance – P & M. This claim of the assessee was disallowed by the AO for want of satisfactory evidences in support of the claim of the assessee and the asseseee has filed copies of ledger extracts and copies of the invoices in respect of each head of expenses. According to the AO, the assessee claimed expenditure of Rs.1,04,72,106/- under the head ‘Repairs and Maintenance – P & M’. However, the ledger extracts of Repairs and Maintenance – P & M for bills of expenses was only to the tune of Rs.62,61,070/-. The AO asked the asseseee to explain the reasons for such differences in the expenses claimed and details submitted. However, the assessee has not been able to provide necessary explanations for the said discrepancies, hence the addition was made. The same position was continued before the NFAC, Delhi, hence the addition was sustained by the NFAC, Delhi.

Against this, the assessee filed appeal before us.

The ld.AR sought for an opportunity to produce necessary details before the AO.

The ld.DR strongly opposed to the submission of the ld.AR.

We have heard the rival submissions and perused the materials on record. In our opinion, it is appropriate to remit the issue back to the file of the AO with a direction to assessee to produce necessary details before the authorities, so as to prove the expenses incurred towards Repairs and Maintenance – P & M. Accordingly, this issue is remitted to the file of AO for fresh consideration in accordance with law.

In the result, the assessee’s appeal is partly allowed for statistical purposes.