HARSHABEN J. PARMAR,SURAT vs. THE INCOME TAX OFFICER, WARD-2(2), SURAT

Ground No.2 and 4 relates to confirming the disallowances of Rs.4,23,150/- out of expenses: 4. We have heard the parties: The Assessing Officer noticed that the assessee has debited Rs.42,31,472/- as other expenses: However, the assessee not produced any books of accounts for verification, inspite of no.of opportunities being heard, allowed to the assessee: Therefore, the assessment was to be framed u/s.144 of the Act and accordingly, in of details, the Assessing Officer has made disallowance @ 1O% of the aforesaid absence expenses at Rs.4,23,147 / - after issue of showcause notice to the assessee: In appeal, the CIT(A) has confirmed the action of the Assessing Officer: Before Us, the Id.AR submitted that assessment proceedings for assessment year 2007-08 were simultaneously carried on the during the course of assessment proceedings for the assessment year under consideration and the assessee has furnished all the details thereon: As regards, disallowance for the impugned year, it was submitted that books of accounts for the year under consideration are audited and are supported by vouchers/bills. There was slight fall in Gross Profit all the expenses Rate due to the changing pattern and increase of turn over as compared preceding Year: 5 On the other hand, the Id.Sr Departmental Representative supported the order of the lower authorities: 6 On careful consideration, we are of the considered view that books of accounts are audited and fall in Gross Profit Rate is also explained being increase in turn over as Year: Therefore, considering the totality of the facts, we compared the earlier assessment deem it fit to restrict the disallowance made 10% to 5%/ of the expenses: Accordingly, the assessee will get relief of Rs.2,11,573 /- These grounds of appeal are therefore partly allowed: 6 In the result, the appeal of the assessee is partly allowed: The order pronounced in the open Court on 2 1 - 01 - 20 / 3 Sdl5 (O.P. MEENA) S4 (CM: GARG) JUDICIAL MEMBER ACCOUNTANT MEMBER yra Surat, faol4 Dated: 22 r 0 2 -20|2 Copy of order forwarded to- Assessee/AO/Pr. CIT / CIT (A)/ITAT (DR) /Guard file of ITAT: By order Assistant Registrar, Surat 7a47 t c11 &xdeiiy a lrnu T7ptia, <a aate