S.M. ENTERPRISES,MUMBAI vs. ACIT 12(1) (OLD), MUMBAI

सुनवाई की तायीख / Date of Hearing : 01.12.2016 घोषणा की तायीख /Date of Pronouncement : 16.12.2016 आदेश / O R D E R PER D. KARUNAKARA RAO, AM:

This appeal filed by the assessee on 26.5.2015 is against the order of the CIT (A)-28, Mumbai dated 31.3.2015 for the assessment year 2010-2011. In this appeal, assessee raised the following grounds which read as under:- “1. In the facts and circumstances of the case and in law, the CIT (A) erred in confirming the disallowance of Rs. 6,16,525/- out of the total disallowance of Rs. 12,33,049/- made by the AO being 10% of the unsupported cash expenses of Rs. 61,66,052/-.

2. Reasons given by the Ld CIT (A) in confirming the disallowance of Rs. 6,16,525/- out of the total disallowance of Rs. 12,33,049/- made by the AO being the 10% of the unsupported cash expenses of Rs. 61,55,052/- are wrong insufficient and contrary to the facts and evidence on record.”

2. Briefly stated relevant facts of the case are that the assessee, who is a „Clearing and Forwarding‟ (C&F) agent, filed the return of income declaring the total income of Rs. 61,55,051/-. Assessment was completed u/s 143(3) of the Act and the assessed income was determined at Rs.73,88,100/- after making addition of Rs. 12,33,049/-. The background facts of this addition, which is the subject matter of the present appeal, include that the assessee debited certain expenses under four