M/S VENUS FOOTARTS LTD., NEEM KA THANA V. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE, Sikar

ITA 844/JPR/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 3604 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 5 month(s) 15 day(s)
• Appeal Type: Income Tax (International Taxation) Appeal
• Pronouncement Date: 29-04-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 13-11-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ROSHANTA MEENA
• Assessee Lawyers: MANISH DHARTIDHANKA
• Keywords: Corroborative evidences
• Section: 201

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S,A JAIPUR JH JESK LH0 KEKZ] YS[KK LNL; ,OA JH FOT; IKY JKO] U;KF;D LNL; DS LE{K BEFORE: SHRI RAMESH. C. SHARMA, AM & SHRI VIJAY PA L RAO, JM VK;DJ VIHY LA- @ ITA NO. 843 & 844/JP/2017 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2010-11 & 2011-12 M/S VENUS FOOTARTS LIMITED, F-126 TO F-128, INDUSTRIAL AREA, NEEM KA THANA, SIKAR CUKE VS. THE ACIT, CIRCLE, SIKAR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AACCV 2248 Q VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI VEDANT AGARWAL (ADV.) & SHRI MANISH DHARTIDHANKA (C.A.) JKTLO DH VKSJ LS @ REVENUE BY : SMT. ROSHANTA MEENA (JCIT) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 12/02/2019 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT: 06/03/2019 VKNS'K@ ORDER PER: VIJAY PAL RAO, J.M. THESE TWO APPEALS BY THE ASSESSEE ARE DIRECTED AGAI NST TWO SEPARATE ORDERS OF THE LD. CIT(A), JAIPUR BOTH DATE D 18.09.2017 FOR THE ASSESSMENT YEARS 2010-11 & 2011-12 RESPECTIVELY. FO R THE ASSESSMENT YEAR 2010-11, THE ASSESSEE HAS RAISED FOLLOWING GRO UNDS:- 1. ON THE FACTS & CIRCUMSTANCES OF THE CASE & IN L AW ALSO LD. CIT(A) GROSSLY ERRED IN CONFIRMING THE ADDITION OF RS. 45,000/- ITA NO.843 & 844/JP/2017 M/S VENUS FOOTARTS LTD. VS. ACIT 2 MADE BY LD. A.O. ON ACCOUNT OF STORES & SPARES EXP. BY REJECTING THE EXPLANATION FILED THE ASSESSEE BEFORE LD. A.O. AS WELL BEFORE CIT(A). 2. ON THE FACTS & CIRCUMSTANCES OF THE CASE & IN LA W ALSO LD. CIT(A) GROSSLY ERRED IN CONFIRMING THE ADDITION OF RS. 43750/- MADE BY LD. A.O. ON ACCOUNT OF TRAVELING EXP BY REJ ECTING THE EXPLANATION FILED THE ASSESSEE BEFORE LD. A.O. AS W ELL BEFORE CIT(A). 3. ON THE FACTS & CIRCUMSTANCES OF THE CASE & IN LA W ALSO LD. CIT(A) GROSSLY ERRED IN CONFIRMING THE ADDITION OF RS. 47880/- MADE BY LD. A.O. ON ACCOUNT OF GENERAL EXP BY REJEC TING THE EXPLANATION FILED THE ASSESSEE BEFORE LD. A.O. AS W ELL BEFORE CIT(A). 4. ON THE FACTS & CIRCUMSTANCES OF THE CASE & IN LA W ALSO LD. CIT(A) GROSSLY ERRED IN CONFIRMING THE ADDITION OF RS. 55,100/- MADE BY LD. A.O. ON ACCOUNT OF MOTOR CAR EXP BY REJ ECTING THE EXPLANATION FILED THE ASSESSEE BEFORE LD. A.O. AS W ELL BEFORE CIT(A). 5. ON THE FACTS AND CIRCUMSTANCES OF THE CASE & IN LAW ALSO LD. CIT(A) GROSSLY ERRED IN STATING THAT AR DID NOT FIL E ANY REJOINDER. IN FACTS IT WAS SUBMITTED BEFORE LD. CIT(A) THAT RE LIANCE MAY KINDLY BE PLACED ON THE WRITTEN SUBMISSION EARLIER FILED AS LD. A.O. HAS NOT BROUGHT ANY NEW THING ON THE RECORD. ITA NO.843 & 844/JP/2017 M/S VENUS FOOTARTS LTD. VS. ACIT 3 2. GROUND NO. 1 IS REGARDING DISALLOWANCE OF STORES & SPARES EXPENSES FOR WANT OF SUPPORTING VOUCHERS. THE ASSES SING OFFICER OBSERVED THAT THE ASSESSEE HAS DEBITED A SUM OF RS. 11,31,803/- UNDER THE HEAD STORES & SPARES. WHILE VERIFYING THE BILLS AND VOUCHERS PRODUCED IN SUPPORT THEREOF THE AO NOTED THAT SOME BILLS AND VOUCHERS PERTAINING TO STORES & SPARES WERE NOT VERIFIABLE. ON FURTHER VERIFICATION IT WAS FOUND THAT THE ASSESSEE COULD NOT PRODUCE TH E SUPPORTING EVIDENCE TO THE EXTENT OF THE EXPENSES OF RS. 98,58 6/-. ACCORDINGLY, THE AO HAS DISALLOWED THE STORES & SPARES TO EXTENT OF RS. 98,586/- ON THE GROUND THAT IT WAS NOT VERIFIABLE AND NOT SUPPORTED BY PROPER AND ADEQUATE EVIDENCE. ON APPEAL, THE LD. CIT(A) AFTER CONSIDERING THE FACTS THAT ASSESSEE HAS MADE CASH PAYMENT OF RS. 89,363/- OF STORES & SPARES EXPENSES WHICH WAS SUPPORTED BY SELF MADE VO UCHERS RESTRICTED DISALLOWANCE TO RS. 45,000/- AND THE REMAINING AMOU NT OF RS. 53,586/- WAS DELETED. 3. BEFORE US, THE LD. AR OF THE ASSESSEE HAS SUBMIT TED THAT THE TURNOVER OF THE ASSESSEE FOR THE YEAR UNDER CONSIDE RATION IS RS. 68.70 CRORE, THEREFORE, THE EXPENDITURE DEBITED BY THE AS SESSEE UNDER THESE HEAD IS VERY REASONABLE AND NOT EXCESSIVE. FURTHER, THE ENTIRE EXPENSES HAS BEEN INCURRED WHOLLY AND EXCLUSIVELY FOR BUSINE SS PURPOSE. ITA NO.843 & 844/JP/2017 M/S VENUS FOOTARTS LTD. VS. ACIT 4 THEREFORE, THE ADHOC DISALLOWANCE MADE BY THE AO AN D SUSTAINED BY THE LD. CIT(A) IS NOT JUSTIFIED. IN SUPPORT OF HIS CONTENTION, HE HAS RELIED UPON THE DECISION OF AGRA BENCH OF THE TRIBUNAL DAT ED 15.02.2013 IN CASE OF M/S PNC CONSTRUCTION CO. LTD. VS. DCIT IN I TA NO. 145/AGR/2012. 4. ON THE OTHER HAND, THE LD. DR HAS SUBMITTED THAT ASSESSEE HAS FAILED TO DISCHARGE ITS ONUS TO SUBSTANTIATE ITS CL AIM BY PRODUCING SUPPORTING EVIDENCE. THE ASSESSEE HAS NOT DISPUTED THE FACTS THAT THERE WERE CASH PAYMENTS IN RESPECT OF STORES & SPARES EX PENSES AND THE ASSESSEE HAS PRODUCED ONLY SELF MADE VOUCHERS. HE H AS RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW AND SUBMITTED THAT THE LD. CIT(A) HAS ALREADY GRANTED SUBSTANTIAL RELIEF TO THE ASSESSEE. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AS WELL AS RELEVANT MATERIAL ON RECORD. THE ASSESSEE HAS DEBITED EXPEND ITURE ON ACCOUNT OF STORES & SPARES OF MORE THAN RS. 11.77 LACS OUT OF WHICH A SUM OF RS. 89,363/- WAS PAID IN CASH. THE SAID CLAIM OF EXPEND ITURE MADE IN CASH WAS SUPPORTED BY SELF MADE VOUCHERS. THOUGH THE EXP ENDITURE INCURRED IN CASH AND SUPPORTED BY SELF MADE VOUCHERS ITSELF IS NOT SUFFICIENT FOR DISALLOWANCE IF THE ASSESSEE HAS ESTABLISHED THE FA CTS THAT SUCH EXPENDITURE WAS INCURRED IN THE PECULIAR CIRCUMSTAN CES AND IN EMERGENT ITA NO.843 & 844/JP/2017 M/S VENUS FOOTARTS LTD. VS. ACIT 5 CONDITION WHERE THERE WAS NO OTHER OPTION BUT TO MA KE THE PAYMENT IN CASH. HOWEVER, IN THE CASE IN HAND ALL THESE EXPEND ITURE ON ACCOUNT OF STORES AND SPARES CLAIMED BY THE ASSESSEE ARE IN RE SPECT OF PURCHASE MADE BY THE ASSESSEE FROM VARIOUS SHOPS IN JAIPUR A ND DELHI. ONCE, THE ASSESSEE HAS CLAIMED THE EXPENDITURE IN RESPECT OF PURCHASE MADE FROM THE SHOPS AT JAIPUR AND DELHI THEN EVEN IF THE PAYM ENT IS MADE IN CASH THE SUPPORTING VERIFIABLE VOUCHERS SHOULD HAVE BEEN PRODUCED BY THE ASSESSEE INSTEAD OF SELF MADE VOUCHERS. THEREFORE, THE PAYMENT MADE IN CASH AND SUPPORTED BY SELF MADE VOUCHERS IN RESP ECT OF PURCHASE MADE FROM THE SHOPS AT JAIPUR AND DELHI CANNOT BE A CCEPTED AS EXCEPTIONAL CIRCUMSTANCES WHEREIN THE ASSESSEE WAS NOT HAVING THE OPTION TO GET A PROPER BILLS/VOUCHERS OR MAKING THE PAYMENT OTHER THAN CASH. THE DECISION RELIED BY THE LD. AR OF THE ASSE SSEE IN RESPECT OF THE WORK GOT BY THE ASSESSEE IN THE REMOTE RURAL FOR WH ICH THE ASSESSEE MADE PAYMENT IN CASH. THE LD. CIT(A) ALREADY GRANTE D A SUBSTANTIAL RELIEF ON THIS ACCOUNT IN PARA 4.3 AS UNDER:- 4.3 I HAVE CAREFULLY CONSIDER THE MATERIAL BEFORE ME. I FIND THAT THE AO MADE THE ADDITION THAT THE APPELLANT FAILED TO FILE THE SUPPORTING EVIDENCE OF RS. 98,586/- UNDER THE HEAD OF STORE AND SPARE EXPENSES. THE AO IN THE REMAND REPORT MENTION ED THAT ON EXAMINATION OF RECORD IT WAS NOTICED THAT EXPENSES OF RS. 59,771/- WERE INCURRED IN CASH OUT OF TOTAL EXPENSE S OF RS. ITA NO.843 & 844/JP/2017 M/S VENUS FOOTARTS LTD. VS. ACIT 6 11,31,803/- CLAIMED IN P. & L ACCOUNT UNDER THE HEA D STORES & SPARES EXPENSES. THUS IT IS FOUND THAT THE CASH PAYMENT MADE OF RS. 89,363/- FOR STORES & SPARES EXPENSES WHICH WAS SUPPORTED BY THE SELF MADE VOUCHERS. THE APPELLANT MADE THE CHEQUE PAYMENT OF RS. 10,72,032/- REMAINING EXPENSES OF STORES & SPARES. THE AO DISALLOWED RS. 98,586/- WITHOUT ANY BASIS. THE EXPE NSES RELATED TO SELF MADE VOUCHERS ONLY RS. 89,363/-. THEREFORE, THE DISALLOWANCES MADE BY THE AO IS UNREASONABLE, UNJUS TIFIED AND ARBITRARY. HENCE, CONSIDERING THE FACTS OF THE CASE AND NATURE OF THE EXPENSES I RESTRICT THE DISALLOWANCE ONLY RS. 4 5,000/- AND BALANCE AMOUNT OF RS. 53,586/- IS DELETED. THIS GRO UND IS PARTLY ALLOWED. THEREFORE, THE ADDITION SUSTAINED BY THE LD. CIT(A) IS ABOUT 50% THAT OF MADE BY THE AO. ACCORDINGLY, IN THE FACTS AND CIRCU MSTANCES OF THE CASE, WE DO NOT FIND ANY ERROR OR ILLEGALITY IN THE IMPUGNED ORDER OF THE LD. CIT(A). 6. GROUND NO. 2 IS REGARDING DISALLOWANCE MADE BY T HE AO ON ACCOUNT OF UNVERIFIABLE EXPENSES. THE AO NOTED THAT THE ASSESSEE HAS CLAIMED RS. 3,76,687/- UNDER THE HEAD OF TRAVELING EXPENSES HOWEVER, NO EVIDENCE IN SUPPORT OF THE EXPENSES OF RS. 43,75 0/- WAS PRODUCED BY THE ASSESSEE FOR VERIFICATION. ACCORDINGLY, THE AO DISALLOWED THE CLAIM OF TRAVELING EXPENSES TO THE EXTENT OF RS. 43 ,750/-. ON APPEAL, THE LD. CIT(A) HAS CONFIRMED THE DISALLOWANCE MADE BY THE AO. ITA NO.843 & 844/JP/2017 M/S VENUS FOOTARTS LTD. VS. ACIT 7 7. BEFORE US, THE LD. AR OF THE ASSESSEE HAS SUBMIT TED THAT THE EXPENDITURE INCURRED BY THE ASSESSEE IS WHOLLY AND EXCLUSIVELY FOR THE BUSINESS PURPOSE. FURTHER, WHEN THE EXPENSES WERE N OT FOUND EXCESSIVE THEN, MERELY BECAUSE THE ASSESSEE COULD N OT PRODUCE PROPER VOUCHERS FOR SOME OF THE EXPENDITURE, THE SAME CANN OT BE DISALLOWED. HE HAS REITERATED HIS CONTENTION AND RELIED UPON TH E ORDER OF THE AGRA BENCH OF THE TRIBUNAL IN CASE OF M/S PNC CONSTRUCTI ON CO. LTD. VS. DCIT (SUPRA). 8. ON THE OTHER HAND, LD. DR HAS RELIED UPON THE OR DERS OF THE AUTHORITIES BELOW AND SUBMITTED THAT THE ASSESSEE H AS NOT PRODUCED THE SUPPORTING VOUCHERS AND ALSO MAKE THE PAYMENT IN CA SH, THEREFORE, THE ASSESSEE HAS FAILED TO DISCHARGE ITS ONUS. 9. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AS WELL AS RELEVANT MATERIAL ON RECORD. THE LD. CIT(A) CALLED FOR REMAN D REPORT FROM THE AO. DURING THE COURSE OF REMAND PROCEEDING, THE AO HAS AGAIN EXAMINED THE CLAIM AND FOUND THAT MOST OF THE EXPEN SES WERE INCURRED IN CASH. FURTHER, SOME OF THE EXPANSE WERE SUPPORTE D ONLY BY SELF MADE VOUCHERS AND NOT SUPPORTED BY VERIFIABLE EVIDE NCE. WE FIND THAT THE AO HAS MADE THE DISALLOWANCE OF THE EXPENDITURE ONLY TO THE EXTENT ITA NO.843 & 844/JP/2017 M/S VENUS FOOTARTS LTD. VS. ACIT 8 WHICH WAS INCURRED IN CASH AND SUPPORTED BY SELF MA DE VOUCHERS. THE LD. CIT(A) HAS CONSIDERED THIS ISSUE IN PARA 5.3 RE PRODUCED AS UNDER:- I HAVE CAREFULLY CONSIDERED THE MATERIAL BEFORE ME . I FIND FROM THE REMAND REPORT THAT MOST EXPENSES INCURRED IN CA SH OUT OF TRAVELLING EXPENSES. IT IS ALSO FOUND THAT SOME EXP ENSES SUPPORTED ONLY SELF MADE VOUCHERS AND NOT SUPPORTED BY ADEQUATE EVIDENCES. THUS, IT IS PROVE THAT EXPENSES ARE NOT FULLY VOUCHED. THEREFORE THE ACTION OF THE AO IS JUSTIFY TO DISALLOWED OF RS. 43750/- OUT OF TOTAL EXPENSES OF TRAVELLING OF RS. 376687/-. HENCE, I CONFIRM THE ADDITION MADE BY THE A OF RS. 43750/-. THIS GROUND IS NOT ALLOWED. ACCORDINGLY, ONCE THE ASSESSEE HAS FAILED TO SUBSTA NTIATE ITS CLAIM BY PRODUCING A VERIFIABLE SUPPORTING EVIDENCE AND FURT HER THE PAYMENT WAS MADE IN CASH THEN, THE DISALLOWANCE MADE BY THE AO AND SUSTAINED BY THE LD. CIT(A) CANNOT BE DEFAULTED WITH. HENCE, WE UPHOLD THE ORDER OF THE AUTHORITIES BELOW. 10. GROUND NO. 3 IS REGARDING THE ADDITION MADE BY THE AO ON ACCOUNT OF GENERAL EXPENSES. THE ASSESSEE HAS DEBIT ED A SUM OF RS. 4,04,804/- UNDER THE GENERAL CHARGES. THE AO NOTED THAT THE ASSESSEE COULD NOT PRODUCE ANY SUPPORTING EVIDENCE IN RESPEC T OF THE AMOUNT OF RS. 47,880/-. ACCORDINGLY, THE AO DISALLOWED THE GE NERAL EXPENSES TO THE EXTENT OF RS. 47,880/- ON THE GROUND THAT IT IS NOT VERIFIABLE AND NOT ITA NO.843 & 844/JP/2017 M/S VENUS FOOTARTS LTD. VS. ACIT 9 SUPPORTED BY ADEQUATE EVIDENCE. ON APPEAL, THE LD. CIT(A) HAS CONFIRMED THE DISALLOWANCE MADE BY THE AO. 11. BEFORE US, THE LD. AR OF THE ASSESSEE HAS SUBMI TTED THAT THE EXPENDITURE WERE INCURRED WHOLLY AND EXCLUSIVELY FO R THE BUSINESS PURPOSE OF THE ASSESSEE AND IT IS ALSO NOT FOUND TO BE EXCESSIVE. THEREFORE EVEN SOME OF THE EXPENSES ARE SUPPORTED S ELF MADE VOUCHERS THE SAME CANNOT BE DISALLOWED ONCE, THE CL AIM OF THE ASSESSEE IS NOT FOUND TO BE BOGUS. 12. ON THE OTHER HAND, THE LD. DR HAS RELIED UPON T HE ORDERS OF THE AUTHORITIES BELOW. 13. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AS WEL L AS RELEVANT MATERIAL ON RECORD. WE FIND THAT THE GENERAL EXPENS ES AS CLAIMED BY THE ASSESSEE IS ONLY 0.06% OF THE TURNOVER OF THE ASSES SEE. THE NATURE OF THE EXPENDITURE CLAIMED BY THE ASSESSEE AND THE AMO UNT IS VERY PETTY IN MOST OF THE CASES AS BELOW AS RS. 50 INCURRED IN RESPECT OF THE MISCELLANEOUS DAILY USE ITEMS AS WELL AS IN RESPECT OF THE SERVICES AVAILED FROM VARIOUS PERSONS. THEREFORE, HAVING REG ARD TO THE NATURE OF EXPENDITURE THE PAYMENT MADE BY THE ASSESSEE IN CAS H IS NOT UNUSUAL. NOBODY WILL ACCEPT SUCH PETTY AMOUNT OF RS. 50/- OT HER THAN CASH. ITA NO.843 & 844/JP/2017 M/S VENUS FOOTARTS LTD. VS. ACIT 10 ACCORDINGLY, HAVING REGARD TO THE FACTS AND CIRCUMS TANCES OF THE CASE THAT THE EXPENSES ARE PETTY IN NATURE AND IN RESPEC T OF THE DAILY USE ITEMS AS WELL AS SERVICES AVAILED FROM VARIOUS PERS ONS THE CASH PAYMENT CANNOT BE A GROUND FOR DISALLOWAS. THE SAID EXPENDI TURE IS NOT FOUND TO BE EXCESSIVE THEN, THE DISALLOWANCE IS NOT CALLED F OR ON THE GROUND THAT SOME OF THE VOUCHERS ARE NOT VERIFIABLE. ACCORDINGL Y, THE DISALLOWANCE MADE BY THE AO ON ACCOUNT OF GENERAL CHARGES IS DEL ETED. 14. GROUND NO. 4 IS REGARDING ADDITION MADE BY THE AO ON ACCOUNT OF MOTOR CAR EXPENSES. THE AO HAS MADE DISALLOWANCE OF RS. 55,100/- OUT OF THE TOTAL MOTOR CAR EXPENSES OF RS. 4,02,008/- O N THE GROUND THAT SOME OF THESE EXPENSES WERE INCURRED IN CASH AND SU PPORTED BY SELF MADE VOUCHERS. ON APPEAL, THE LD. CIT(A) HAS CONFIR MED THE DISALLOWANCE MADE BY THE AO. 15. WE HAVE HEARD THE LD. AR AS WELL AS LD. DR AND CONSIDERED THE RELEVANT MATERIAL ON RECORD. AFTER GOING THROUGH TH E DETAILS OF THE EXPENDITURE INCURRED ON MOTOR CAR WE FIND THAT THE ENTIRE EXPENDITURE CLAIMED BY THE ASSESSEE IS IN RESPECT OF FUEL (PETR OL AND DIESEL). AS PER LEDGER ACCOUNT THE ASSESSEE HAS GIVEN ALL THE DETAI LS OF FUEL EXPENSES, VOUCHERS AND MOST OF THE EXPENSES WERE SUPPORTED BY THE BILLS OF THE PETROL PUMP. THEREFORE, WHEN THE AO HAS NOT FOUND A NY UNUSUAL OR ITA NO.843 & 844/JP/2017 M/S VENUS FOOTARTS LTD. VS. ACIT 11 EXCESSIVE EXPENDITURE ON ACCOUNT OF FUEL DURING THE YEAR UNDER CONSIDERATION THEN, DISALLOWANCE IS UNJUSTIFIED. EV EN OTHERWISE THE FUEL EXPENDITURE IS VERIFIABLE FROM THE COUNTERPART AND WAS NOT FOUND TO BE EXCESSIVE OR BOGUS. ACCORDINGLY, DISALLOWANCES MADE BY THE AO ON ACCOUNT OF MOTOR CAR EXPENSES AND SPECIFICALLY FUEL EXPENSES ARE DELETED. 16. FOR THE ASSESSMENT YEAR 2011-12, THE ASSESSEE HAS RAISED FOLLOWING GROUNDS:- 1. ON THE FACTS & CIRCUMSTANCES OF THE CASE & IN L AW ALSO LD. CIT(A) GROSSLY ERRED IN CONFIRMING THE ADDITION OF RS. 28,000/- MADE BY LD. A.O. ON ACCOUNT OF SALES & ADMINISTRATI VE EXP BY REJECTING THE EXPLANATION FILED THE ASSESSEE BEFORE LD. A.O. AS WELL BEFORE CIT(A). 2. ON THE FACTS & CIRCUMSTANCES OF THE CASE & IN LA W ALSO LD. CIT(A) GROSSLY ERRED IN CONFIRMING THE ADDITION OF RS. 43593/- MADE BY LD. A.O. ON ACCOUNT OF GENERAL CHARGES BY R EJECTING THE EXPLANATION FILED THE ASSESSEE BEFORE LD. A.O. AS W ELL BEFORE CIT(A). 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE & IN LAW ALSO LD. CIT(A) GROSSLY ERRED IN STATING THAT AR DID NOT FIL E ANY REJOINDER. IN FACTS IT WAS SUBMITTED BEFORE LD. CIT(A) THAT RE LIANCE MAY ITA NO.843 & 844/JP/2017 M/S VENUS FOOTARTS LTD. VS. ACIT 12 KINDLY BE PLACED ON THE WRITTEN SUBMISSION EARLIER FILED AS LD. A.O. HAS NOT BROUGHT ANY NEW THING ON THE RECORD. 17. GROUND NO. 1 IS REGARDING DISALLOWANCE OF SALES AND ADMINISTRATIVE EXPENSES. THE AO NOTED THAT THE ASSE SSEE HAS DEBITED RS. 26,99,977/- UNDER THE HEAD SALES AND ADMINISTRA TIVE EXPENSES WHICH INCLUDES THE EXPENSES ON ACCOUNT OF STORES AN D SPARES. THE AO NOTED THAT THE EXPENDITURE TO THE EXTENT OF RS. 56, 067/- WHICH ON ACCOUNT OF STORES AND SPARES WAS NOT VERIFIABLE AS THE ASSESSEE HAS NOT PRODUCE THE PROPER VOUCHERS. ON APPEAL, THE LD.CIT( A) HAS RESTRICTED THE DISALLOWED OF RS. 28,000/-. 18. WE HAVE HEARD THE LD. AR AS WELL AS LD. DR AND CONSIDERED THE RELEVANT MATERIAL ON RECORD. THIS ISSUE IS COMMON A S RAISED BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2010-11 IN GROUND NO. 1. IN VIEW OF OUR FINDING ON THIS ISSUE FOR THE ASSESSMENT YEAR 2 010-11 THE DISALLOWANCE SUSTAINED BY THE LD. CIT(A) IS UPHELD. 19. GROUND NO. 2 IS REGARDING ADDITION MADE ON ACCO UNT OF GENERAL CHARGES. THE AO HAS MADE DISALLOWANCE OF RS. 43,593 /- UNDER THE HEAD GENERAL CHARGES FOR WANT OF PROPER BILLS AND VOUCHE RS. THIS ISSUE IS IDENTICAL IN THE APPEAL FOR THE ASSESSMENT YEAR 201 0-11 IN GROUND NO. 3. ITA NO.843 & 844/JP/2017 M/S VENUS FOOTARTS LTD. VS. ACIT 13 IN VIEW OF OUR FINDING FOR THE ASSESSMENT YEAR 2010 -11 ON THIS ISSUE THE DISALLOWANCE MADE BY THE AO IS DELETED. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE AR E PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 06/03/2019 SD/- SD/- JESK LH0 KEKZ FOT; IKY JKO (RAMESH. C. SHARMA) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 06/03/2019. * SANTOSH. VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- M/S VENUS FOOTARTS LIMITED, SIKAR. 2. IZR;FKHZ@ THE RESPONDENT- ACIT, CIRCLE, SIKAR. 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR. 6. XKMZ QKBZY@ GUARD FILE {ITA NO. 843 & 844/JP/2017} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR