S DILLI,TINDIVANAM vs. ITO WARD 2, VILLIPURAM

This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals), Puduchery, dated 11.01.2018 relevant to the assessment year 2013-14.

Brief facts of the case are that the Tribunal order in 2013-14 dated 22.07.2019 has been recalled for limited purposes vide order in M.P. No. 11/Chny/2018 dated 15.07.2022 to adjudicate ground No. 3.1 raised in the appeal of the assessee relating to confirmation of disallowance of expenses such as (i) Boiling & Hulling Charges and (ii) Packing material expenses of ₹.2,00,000/- each.

When the appeal was taken up for hearing, none appeared on behalf of the assessee or filed any adjournment petition. Hence we proceed to decide the appeal on merits after hearing the ld. DR.

We have heard the ld. DR, perused the materials available on record and gone through the orders of authorities below. In the assessment order, the Assessing Officer has disallowed the expenses of Boiling & Hulling Charges and Packing material expenses of ₹.2,00,000/- each on estimated basis and on appeal, the ld. CIT(A) confirmed the disallowances made by the Assessing Officer. In this case, it is not the case of the Department that the assessee has not incurred the above expenses, but, since the assessee could not vouched the expenses property, the Assessing Officer has disallowed ₹.2,00,000/- towards expenses of Boiling & Hulling Charges and Packing material expenses, appears to be on higher side. Accordingly, we confirm the disallowance to the extent of ₹.1,00,000/- each towards expenses of Boiling & Hulling Charges and Packing material expenses and the assessee get relief to the extent of ₹.1,00,000/- each for both the expenses. Thus, the ground raised by the assessee is partly allowed.

In the result, the appeal filed by the assessee is partly allowed.