SENNIAPPAN VIMALA,COIMBATORE vs. ACIT, CORPORATE CIRCLE 2, COIMBATORE, COIMBATORE

आयकर अपीलीय अिधकरण “बी” �ायपीठ चे�ई म�। IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHENNAI माननीय �ी एबी टी. वक�, �ाियक सद" एवं माननीय �ी मनोज कुमार अ'वाल ,लेखा सद" के सम)। BEFORE HON’BLE SHRI ABY T. VARKEY, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM 1. आयकरअपील सं./ ITA No.1587/Chny/2023 (िनधा*रण वष* / Assessment Year: 2012-13) 2. आयकरअपील सं./ ITA No.1588/Chny/2023 (िनधा*रण वष* / Assessment Year: 2013-14) 3. आयकरअपील सं./ ITA No.1589/Chny/2023 (िनधा*रण वष* / Assessment Year: 2014-15) Smt. Senniappan Vimala ACIT बनाम 32/51, Kavundampalayam Corporate Circle-2 / Vs. TVS Nagar, Coimbatore-641 125 Coimbatore. �थायीलेखासं./जीआइआरसं./PAN/GIR No. AEFPV-8859-P (अपीलाथ�/Appellant) : (� थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Shri S. Sridhar (Advocate)-Ld.AR � थ�कीओरसे/Respondent by : Shri Praveen (JCIT) -Ld. DR सुनवाईकीतारीख/Date of Hearing : 14-05-2024 घोषणाकीतारीख /Date of Pronouncement : 16-05-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)

[CIT(A)] all dated 24-11-2023 in the matter of separate assessments framed by Ld. Assessing Officer [AO] u/s. 143(3) of the Act. The sole grievance of the assessee is confirmation of addition of adhoc disallowance of certain expenses. Having heard rival submissions, the appeals are disposed-off as under. The assessee being resident is engaged in manufacturing of bricks. 2. During the course of assessment proceeding of AY 2012-13, the assessee filed financial statements, tax audit report etc. It transpired that the assessee claimed wages for Rs.622.41 Lacs but did not produce any bills or vouchers in support of the same. Consequently, Ld. AO made adhoc disallowance of Rs.61.24 Lacs. Similar assessment was framed for AY 2013-14 wherein Ld. AO made adhoc addition of Rs.50 Lacs. In AY 2014-15, the assessee could not produce books of accounts. Accordingly, Ld. AO disallowed 10% of wage and 25% of transportation expenses and made aggregate disallowance of Rs.221.41 Lacs. 3. The Ld. CIT(A) noted that AO did not point out any deficiency in the books of accounts. The Ld. AO should have examined the books of accounts. Accordingly, Ld. CIT(A) reduced impugned disallowance to 50% in all the three years. 4. It is quite apparent that though the assessee has claimed certain expenditure, it has failed to substantiate the same. The onus was on the assessee to furnish books of accounts and provide requisite details of wages and transportation expenses. Since the assessee failed to do so, Ld. AO made estimated disallowance which has been reduced to 50% in the first appellate order. However, it has rightly been observed by Ld. CIT(A) that the assessee furnished financial statements and no defect was pointed out by Ld. AO in the same. The Ld. AO should have made

further examination. The Ld. AR has placed on record profitability chart for AYs 2009-10 to 2011-12. It could be seen that assessee has earned Gross Profit (GP) of 10.04% in AY 2009-10, 7.67% in AY 2010-11, 6.18% in AY 2011-12. The Net Profit rates for these years are 0.43%, 0.55% & 0.58% respectively. These indices would be vital to ascertain the claim of the assessee. The Ld. AR has submitted that given another opportunity, the assessee is in a position to substantiate the same. Accepting the plea of Ld. AR and keeping in mind the principle of natural justice, we deem it fit to grant another opportunity to the assessee to substantiate its case. Therefore, the issue of adhoc disallowance, in all the three years, stands restored back to Ld. AO for fresh consideration after affording reasonable opportunity of hearing to the assessee. The assessee is directed to substantiate her claim. No other ground has been urged before us. 5. All the appeals stand allowed for statistical purposes. Order pronounced on 16th May, 2024

Sd/- Sd/- (ABY T. VARKEY) (MANOJ KUMAR AGGARWAL) �ाियक सद" /JUDICIAL MEMBER लेखा सद" / ACCOUNTANT MEMBER चे4ई Chennai; िदनांक Dated :16-05-2024 DS आदेशकीIितिलिपअ'ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. � थ�/Respondent 3. आयकरआयु=/CIT 4. िवभागीय�ितिनिध/DR 5. गाडBफाईल/GF