ANAND AUTOMOTIVE P. LTD ( FORMERLY KNOWN AS ANAND AUTOMOTIVE LTD),MUMBAI vs. ASST CIT CIR 2(1)(1), MUMBAI

Assessee by : Shri Prasad Bapat-Ld. AR Revenue by : Shri Abdul Hakeem M. - Ld. DR सुनवाई क" तार"ख/ : 01/05/2019 Date of Hearing घोषणा क" तार"ख / : 16/05/2019 Date of Pronouncement आदेश / O R D E R Per Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year [AY] 2006-07 contest the order of Ld. Commissioner of Income-Tax (Appeals)-4, Mumbai [CIT(A)], Appeal No. CIT(A)-4/IT-63/ACIT-2(1)(1)/2015-16 dated 22/09/2016 on following grounds of appeal: -

1. On the facts and in the circumstances of the case and in law the learned CIT(Appeals) erred in confirming disallowance of INR 33,908/- u/s 40A(3) stating that the assessee has violated provision of section 40A(3).

2 2. On the facts and in the circumstances of the case and in law the learned CIT(Appeals) erred in confirming disallowance of 20% of cash expenditure i.e. INR 8,17,310 stating the huge cash expenditure is unverifiable as the assessee does not have adequately supported bills.”

2.1 This is second round of appeal before us since the matter of disallowance of repairs & maintenance expenses, in the first round, was set aside to the file of Ld. AO for re-adjudication by this Tribunal vide para 10 of order dated 28/06/2013, a copy of which has been placed on record. Accordingly, assessment u/s 143(3) r.w.s. 254 has been reframed on 18/03/2015 wherein the assessee has again been saddled with aggregate addition of Rs.8,51,218/- on account of repairs & maintenance expenses, which upon confirmation by Ld. first appellate authority vide impugned order dated 22/09/2016, is the subject matter of present appeal before us. 2.2 In the set aside proceedings, upon perusal of details of repairs & maintenance expenses as filed by the assessee, it transpired that the assessee made certain payments in cash exceeding Rs.20,000/- in violation of Section 40A(3) which called for disallowance to the extent of 20% of such expenditure. The details of these expenditure could be extracted in the following manner: - Sr. No. Name of the Party Amount (Rs.) 1 Vishal Electricals 64,395/- 2. Cash 20,138/- 3. S.M.Enterprises (Pune) 26,062/- 4. K.N.G.Wires & Cables 58,945/- Total 1,69,540/- Accordingly, an amount of Rs.33,908/- has been disallowed and added back to the income of the assessee.