SATISH SEHRAWAT,DELHI vs. ACIT, CIRCLE 28(1), DELHI

This assessee’s appeal raises the following substantive grounds: “1. On the facts and circumstances of the case, the impugned order has been issued in gross violation of the principles of natural justice as the Ld. CIT (A) has failed to adjudicate the factual ground no. 1, 2, 4 & 5 raised by the Appellant and mechanically remanded the matter back to the Ld. AO for fresh assessment on these grounds, without considering the fact that the impugned assessment order has been completed on the similar direction of the hon'ble ITAT. 2. On facts and circumstances of the case, the learned CIT(Appeal) has erred in law in set aside the adhoc disallowances out of expenses ignoring the fact that the books of accounts have been accepted as complete and correct and the assessment is completed u/s 143(3) of the Act.

Learned counsel fairly submits that the assessee no more wishes to press its seventh substantive ground keeping in light the smallness of the amount involved therein subject to a caveat that

Next comes the sole substantive issue on merits between the parties wherein the assessee is aggrieved against the learned lower authorities’ respective assessment and lower appellate findings inter alia disallowing his business promotion, staff welfare, printing and stationery as well as Petrol, Diesel, CNG etc involving varying sums. The Revenue could hardly dispute that all these expenses are indeed incurred on day to day basis wholly and exclusively for the purpose of business only u/s 37(1) of the Act. The fact also remains that it was the assessee bounden duty to plead and prove the same by way of his cogent supportive material in both the lower proceedings. Be that as it may, we find only a part merit in the assessee’s case that such a expenditure could not have been disallowed at an exorbitant rate of 25% as is done in both the lower proceedings. We thus deem it appropriate in the larger interest of justice that the lumpsump disallowance at the rate of 2% only in the assessee’s hands under all these heads will meet the needs of justice with rider that the same shall not be

This assessee’s appeal is partly allowed.