Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, ‘ B’ BENCH : CHENNAI
Before: SHRI GEORGE MATHAN & SHRI A.MOHAN ALANKAMONY
आदेश / O R D E R
PER GEORGE MATHAN, JUDICIAL MEMBER
This is an appeal filed by the assessee against the order of the Commissioner of Income-tax (Appeals)-12,Chennai in appeal No.61/CIT(A)-12/2014-15 dated 11.08.2017 for the assessment year 2011-12.
ITA No.2592/Chny./2017 :- 2 -:
Mr.S.Ramesh represented on behalf of the Assessee, and Ms.Ruby George represented on behalf of the Revenue.
The appeal filed by the assessee is belated by 4 days for which the assessee has filed necessary affidavit for explaining the delay. The reasons given for the delay have not been found to be false. Consequently, the delay in filing of the appeal is condoned and appeal is disposed off on merits.
It was submitted by the ld.A.R that in the assessment order, the ld. Assessing Officer had disallowed 25% of the salary expenses claimed by the assessee claiming that the ld.A.R could not explain the nature of expenses and accepted the expenses as bogus. It was further submitted that on appeal, Ld.CIT(A) had considered the evidences produced and restricted the disallowance to `6.5 lakhs, just to 8.66% of the total wages. It was a prayer that when all the evidences have been produced, the expenditure was liable to be allowed.
In reply, the ld.D.R vehemently supported the orders of ld. Assessing Officer and the Ld.CIT(A).
We have considered the rival submissions. A perusal of the assessment order shows that the ld. Assessing Officer has made an ITA No.2592/Chny./2017 :- 3 -:
adhoc disallowance of 25% of the salary paid by the assessee. A perusal of the order of Ld.CIT(A) shows that the Ld.CIT(A) has made an adhoc disallowance. Perusal of order of Ld.CIT(A) also shows that all the details in respect of salary paid have been produced before him, which were produced before the ld. Assessing Officer. Admittedly, adhoc disallowances are not permissible, unless the books of accounts are rejected. This being so, the issue in this appeal is restored to the file of Assessing Officer for re-adjudication. The Assessing Officer shall examine the evidences produced and shall not resort to any adhoc disallowances, if the evidences are produced.
In the result, the appeal of the assessee is partly allowed for statistical purposes.
Order pronounced in the open court after conclusion of hearing on 27th August, 2018, at Chennai.