Gabriel India Ltd, Mumbai vs Dcit Rg 5(1)(1), Mumbai on 8 February, 2019
The contention of the
authorities below that TDS might not have been deducted on some of
these expenses also lacks merit as the assessee has brought on record
tax audit report to prove that there was no default in compliance of
TDS. The complete details of these expenses were furnished by the
assessee before the authorities below. In our considered view,
disallowance of these miscellaneous expenses on adhoc basis @ 2% of
miscellaneous expenses was made by authorities below merely on
conjectures and surmises without bring any incriminating material on
record and such disallowances on adhoc basis in the manner done by
the authorities below keeping in view facts and material on record
before the authorities below is not permissible. Our view is fortified by
the following decisions of tribunal relied upon by the assessee, M/s.
PNC Construction Co. Ltd., v. DCIT, ITA no. 145/Agr/2012 dated
13
I.T.A. No.2778/Mum/2017
15.02.2003, ACIT v. M/s. Perfect Circle Victor Ltd., ITA no.
2067/Mum/2007 vide order dated 30.06.2011 and decision of
Mumbai-tribunal in the case of Hindustan Unilever Ltd. v. ITO, ITA
no. 1144/Mum/2011 vide order dated 09.11.2016. Thus, the assessee
succeeds on this issue and the entire disallowance of miscellaneous
expenses as was made by the AO and as confirmed by learned CIT(A)
stood deleted. The ground no. 2 is allowed.We order accordingly.