ACIT Cir. 27(1),New Delhi. Vs. M/s Richa & Co., 2/2, WHS, Kirti Nagar, New Delhi-110015.
February, 15th 2013
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH "F" NEW DELHI
BEFORE SHRI R.P. TOLANI AND SHRI B.C. MEENA
ITA No. 6027/Del/2012
Asstt. Yr. 2008-09
ACIT Cir. 27(1), Vs. M/s Richa & Co.,
New Delhi. 2/2, WHS, Kirti Nagar,
( Appellant ) ( Respondent )
Appellant by : Shri Bhim Singh Sr. DR
Respondent by : Shri K. V.V.S.R. Krishna CA
PER R.P. TOLANI, J.M::
This is Revenue's appeal against CIT(A)'s order dated 27-9-2012
relating to A.Y. 2008-09. Following grounds are raised.
"On the facts and in the circumstances of the case, the Ld.
CIT(A) erred in law as well as on facts by
1. In deleting the addition of Rs. 9,17,254/- made by the AO
on account of foreign exchange of partners out of travelling
2. In deleting the addition of Rs. 5,00,000/- made by the AO
on account of Sampling expenses.
3. In deleting the addition of Rs. 3,30,296/- made by the AO
on account of telephone expenses.
4. In deleting the addition of Rs. 4,13,279/- made by the AO
on account of car, depreciation etc.
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Richa & Co.
5. Whether ld. CIT(A) is justified in deleting the additions
made by the AO on the ground that AO ha snot rejected the
books of accounts and assessee has paid FBT.
2. Ld. DR relied on the order of assessing officer and contends that the
assessing officer observed that the assessee had spent disproportionate
amount on foreign trips of partners as compared to employees. Besides, on
random basis, the remaining expenditures were rightly disallowed.
3. Ld. Counsel for the assessee on the other hand vehemently argues that
assessing officer has himself accepted that foreign travels of partners were
for business purposes. When there is no discrepancy or deficiency in the
books of a/cs, method of accounting, supporting vouchers, in these
circumstances, there is no justification for ad hoc disallowance out of
business expenses on comparison basis. Not a single item of expenditure
has been objectively questioned and on surmises the additions have been
made. FBT return filed by the assessee has been accepted in toto. Thus in the
absence of any mistake what-so-ever, the additions have been rightly deleted
by CIT(A) on pertinent observations that same have been disallowed by
assessing officer on general reasons and guess work.
4. We have heard rival contentions and gone through the entire material
available on record. It emerges from the record that no specific discrepancy
has been pointed out in assessee's books of a/c. Ad hoc disallowance has
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Richa & Co.
been made purely on guess work and surmises. All other details of the
assessee, accounts and income including FBT have been accepted. In these
facts and circumstances, we see no infirmity in the order of CIT(A), which is
5. In the result, revenue's appeal is dismissed.
Order pronounced in open court on 13-02-2013.
( B.C. MEENA ) ( R.P. TOLANI )
ACCOUNTANT MEMBER JUDICIAL MEMBER
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