I.T.A. No. 168/Ind/2017. Case: Ms. Shriji Polymers(India) Ltd. Vs ACIT 2(1). ITAT (Income Tax Appellate Tribunal)

Case NumberI.T.A. No. 168/Ind/2017
CounselFor Appellant: Shri S.S. Deshpande, Adv. and For Respondents: Shri Mohd. Javed
JudgesShri C.M. Garg, Judicial Member and Shri O.P. Meena, Accountant Member
IssueCompanies Act
Judgement DateMay 05, 2017
CourtITAT (Income Tax Appellate Tribunal)


Shri C.M. Garg, JM

  1. 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.

  2. The only issue raised in this appeal by the assessee is that the 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.

  3. During the course of assessment proceedings the Assessing 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.

  4. Before us, the learned counsel for the assessee submitted that 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...

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