FIRE TRIX ENGINEERING & SYSTEMS P. LTD.,CHENNAI vs. ITO CORPORATE WARD 2(2), CHENNAI

This is an appeal filed by the assessee against the order of the Commissioner of Income-tax (Appeals)-13, Chennai in dated 14.11.2017 for the assessment year 2012-13.

Mr.T.T.Durairaj Kandiar represented on behalf of the Assessee and Mr.Guru Bashyam represented on behalf of the Revenue.

It was submitted by ld.A.R that assessee is dealers in fire extinguishing products. It was a submission that business promotion expenses to an extent of `11,10,506/- came to be disallowed on the ground that they were supported by self-vouchers, self made vouchers and some third party vouchers, which appeared to have been cooked up. As per the ld. Assessing Officer, the vouchers submitted appeared fresh, neither faded nor torn. It was a submission that Ld.CIT(A) on the ground that there was no further supporting documents, confirmed the disallowance of `11,10,506/- as non-genuine business promotion expenses. It was a submission that the assessee has produced all the evidences, which are in the form of vouchers, and none of the vouchers are found to be false and the disallowances have been made on presumptions. It was a prayer that the disallowances sustained by Ld.CIT(A) may be deleted.

In reply, the ld.D.R supported the orders of the ld. Assessing Officer and the ld.CIT(A).

We have considered the rival submissions. A perusal of the assessment order and order of the CIT(Appeals) shows that the disallowances made by the ld. Assessing Officer and confirmed by the Ld.CIT(A) are only on the basis of presumptions. An assessment order cannot be made on presumptions and assumptions. It is not the case that the assessee has not produced vouchers. The assessee has produced them. Just because the ld. Assessing Officer suspects the same, there cannot be any disallowance. This being so, the disallowance made by the ld. Assessing Officer and confirmed by the ld.CIT(A) stands deleted.

In the result, the appeal of the assessee is allowed.