SMT KANAK CHAKRABORTY,KOLKATA vs. ACIT, CIRCLE-43, , KOLKATA

There is delay of 85 days in filing of the appeal. After perusing the petition for condonation of delay, I am convinced that the assessee was prevented from reasonable cause for filing of the appeal in time. Hence I condone the delay and admit the appeal.

After hearing rival contentions, I find that Ground No. 1 and 2 are against adhoc disallowances which are made without rejection of books of account. The disallowance was made on estimated basis. The CIT(A) in an arbitrary manner deleted certain adhoc disallowances and has sustained certain adhoc disallowances. I find no reason for Assessment Year: 2013-14 Smt. Kanak Chakroborty such adhoc actions when no defects have been pointed out in the books of account or the vouchers and another document given by the Ld. CIT(A). When the disallowance is made on an adhoc basis, on the ground that the expenditure is to be treated as capital expenditure, without mentioning the defects in the books of account or the vouchers and another document such arbitrary disallowance cannot be sustained. Thus we allow Ground No. 1 and 2.

Ground No. 3 as against an addition made on valuation of closing stock. This issue is covered in favour of the assessee by the decision of ‘SMC’ Bench of the Tribunal in for the assessment year 2006-07 order dated 31.10.2017 in assessee’s own case. Respectfully follow we allow this ground of the assessee.