Take notes as you read a judgment using our Virtual Legal Assistant and get email alerts whenever a new judgment matches your query (Query Alert Service). Try out our Premium Member services -- Free for one month.\n\nIncome Tax Appellate Tribunal - Delhi\nM/S. Scan Holdings Pvt. Ltd., New Delhi vs Acit, New Delhi on 7 February, 2020\n       IN THE INCOME TAX APPELLATE TRIBUNAL\n             DELHI BENCH 'G', NEW DELHI\n           Before Sh. Kuldip Singh, Judicial Member\n            Dr. B. R. R. Kumar, Accountant Member\n       ITA No. 1463/Del/2017 : Asstt. Year : 2008-09\n       ITA No. 1464/Del/2017 : Asstt. Year : 2012-13\nM/s Scan Holdings Pvt. Ltd.,          Vs   Assistant Commissioner of\nF-4, Shopping Complex, A-Block,            Income Tax, Circle-22(2),\nMeera Bagh, New Delhi-110087               New Delhi\n(APPELLANT)                                (RESPONDENT)\nPAN No. AABCS0852N\n                  Assessee by : Sh. S. Krishnan, Adv.\n                  Revenue by : Sh. Saras Kumar, Sr. DR\nDate of Hearing: 20.01.2020           Date of Pronouncement: 07.02.2020\n\n\n                                      ORDER\n\nPer Dr. B. R. R. Kumar, Accountant Member:\n     The    prese nt   appeals    have       been   filed    by   the    assessee\nagainst    the   orde rs   of   ld.    CIT    (A)-17,       New   Delhi    dated\n20.01.2017.\n\n2.   Since, the issues involved in both the appeals are common,\nthey were heard together.\n\n3.   In ITA No. 1463/Del/2017 for the assessment year 2007-08,\nfollowing grounds have been raised by the assessee:\n     "1. On the facts & in the circumstances of the case and in law,\n     the CIT(A) erred in sustaining estimated addition of\n     Rs.1,00,000 on account of cash expenses."\n\n4.   The lone ground in the appeal relates to the           contention    of   the\nassessee against ad-hoc disallowance made by the Assessing Officer. The\nAssessing Officer made disallowance of Rs.1,00,000/- out of the car\n                                      2                  ITA Nos. 1463 & 1464/Del/2017\n                                                                Scan Holdings Pvt. Ltd.\n\nrunning expenses, courier and postage expenses, miscellaneous expenses,\nprinting and stationery, staff welfare and conveyance expenses on the\nground that no bills/vouchers were produced to substantiate the claim of\nexpenses and the expenses were claimed to have been incurred in cash\nand since, the Assessing Officer found the claim of the aassessee as non-\nverifiable, therefore, he disallowed Rs.1,00,000/- out of the same.\n\n5.    During the arguments before us, the ld. AR referred to the entire\nbills submitted before the authorities below and argued that the bills have\nnot been duly considered by the revenue authorities. The ld. DR relied on\nthe orders of the revenue.\n\n6.    Heard the arguments of both the parties and perused the material\navailable on record.\n\n7.    On perusal of the facts and paper book filed before us, we find that\nthe assessee has discharged the onus and allowability of the expenses by\nfurnishing the relevant bills/vouchers before the Assessing Officer, which\nthey failed to give due consideration. Under these circumstances, we hold\nthat the authorities are not reasonable to disallow Rs.1,00,000/- out of the\ncar running, courier & postage, printing & stationery, conveyance and staff\nwelfare expenses. Therefore, appeal of the assessee on this ground is\nallowed.\n\n8.    In ITA No. 1464/Del/2017 for the assessment year 2012-13,\nfollowing grounds have been raised by the assessee:\n      "1. On the facts & in the circumstances of the case and in law,\n      the CIT(A) erred in sustaining estimated addition of\n      Rs.2,00,000 on account of cash expenses."\n\n9.    The lone ground relate to contention of the aassessee against ad-\nhoc disallowance of Rs.2,00,000/- made by the Assessing Officer, out of\ncar running, staff welfare and conveyance expenses. The disallowance was\n                                        3                  ITA Nos. 1463 & 1464/Del/2017\n                                                                  Scan Holdings Pvt. Ltd.\n\nmade on the ground that no bills/vouchers of boarding and lodging\ncharges were furnished.\n\n10.     During the arguments before us, the ld. AR referred to the entire\nbills submitted before the authorities below and argued that the bills have\nnot been duly considered by the revenue authorities. The ld. DR relied on\nthe orders of the revenue.\n\n11.     Heard the arguments of both the parties and perused the material\navailable on record.\n\n12.     On perusal of the facts and paper book filed before us, we find that\nthe assessee has discharged the onus and allowability of the expenses by\nfurnishing the relevant bills/vouchers before the Assessing Officer, which\nthey failed to give due consideration. Under these circumstances, we hold\nthat the authorities are not reasonable to disallow Rs.2,00,000/- out of the\ncar running, courier & postage, printing & stationery, conveyance and staff\nwelfare expenses. Therefore, appeal of the assessee on this ground is\nallowed.\n\n13.     In the result, the appeals of the assessee are allowed.\n Orde r Pronounced in the Open Court on 07/02/2020.\n\n            Sd/-                                         Sd/-\n  (Kuldip Singh)                                 (Dr. B. R. R. Kumar)\n Judicial Member                                 Accountant Member\nDated: 07/02/2020\n*Subodh*\nCopy forwarded to:\n1. Appellant\n2. Respondent\n3. CIT\n4. CIT(Appeals)\n5. DR: ITAT\n                                                       ASSISTANT REGISTRAR