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Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI C.M. GARG & SHRI O.P. MEENA
आदेश /O R D E R
PER SHRI C.M. GARG, JM
This appeal has been filed by the assessee against the
order of the learned CIT(A), Ujjain, dated 24.1.2017 in First Appeal
No. U-310/2016-17 for the assessment year 2013-14. 1
Kailash Tiwari ITA No. 309/Ind/2015
The only issue raised in this appeal by the assessee is that the
Commissioner of Income Tax (Appeals) was not justified in
confirming the addition of Rs.7,50,738/- by making 10% ad hoc
disallowance of certain expenses.
During the course of assessment proceedings the Assessing
Officer found from the bills and vouchers relating to ‘car running
expenses’, ‘refreshment expenses’, ‘vehicle running expenses’ and
‘travelling expenses’ that these were not fully verifiable. He also
noted that some of the bills were self-made without any
authentication. He further observed that in such expenses personal
user of the same cannot be ruled. The Assessing Officer, therefore,
disallowed 10% of the same i.e. Rs. 7,50,738/- out of the same and
added back to the total income of the assessee. On appeal, the
Commissioner of Income Tax (Appeals) found that in earlier
assessment year the Assessing Officer had made the disallowance
out of travelling expenses @ 10%. Since the disallowance during the
year under consideration was the same as in the earlier year, the
Commissioner of Income Tax (Appeals) confirmed the same. Now
the assessee is in appeal before the Tribunal. 2
Kailash Tiwari ITA No. 309/Ind/2015
Before us, the learned counsel for the assessee submitted that
the assessee has maintained regular books of accounts and the
books are duly audited as per the Companies Act and the report in
Form No. 3CD has been furnished. The learned counsel for the
assessee further submitted that that the assessee has recorded all
expenses properly in the books of accounts. He, therefore, prayed
that as such the claim of the assessee may kindly be allowed.
On the other hand, the learned DR relied upon the orders of
the authorities below.
We have considered the submissions of both the sides. From
a perusal of record we find that in the earlier assessment year also
the Assessing Officer made disallowance out of travelling expenses
at the rate of 10%. This is not the case of the assessee before us
that this disallowance @ 10% in earlier was either deleted or
reduced by any appellate authority. We, therefore, find no flaw in
the orders of the authorities below and accordingly confirm the
disallowance % 10% as made and sustained by the Assessing
Officer and the Commissioner of Income Tax (Appeals).
In the result, the appeal of the assessee is dismissed. 3
Kailash Tiwari ITA No. 309/Ind/2015 The order has been pronounced in open Court on 5th May,
2017.
Sd/- sd/-
लेखा सद�य �या�यक सद�य (O.P.Meena) (C.M. Garg) Accountant Member Judicial Member
May 5, 2017. Dn/