M/S. SHRIJI POLYMERS (INDIA) LTD.,UJJAIN vs. THE ACIT 2(1), UJJAIN

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

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.

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

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.

the authorities below.

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).

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/