M/s. Seward Exports Pvt. Ltd.5-L-22, Mahaveer Nagar-3, Kota-324005, Kota v. ACIT, Circle-1, Kota, Circle-1, Kota

ITA 600/JPR/2019 | 2014-2015
Pronouncement Date: 30-03-2021 | Result: Allowed

Appeal Details

RSA Number 60023114 RSA 2019
Assessee PAN AAFCS7423M
Bench Jaipur
Appeal Number ITA 600/JPR/2019
Duration Of Justice 1 year(s) 11 month(s)
Appellant M/s. Seward Exports Pvt. Ltd.5-L-22, Mahaveer Nagar-3, Kota-324005, Kota
Respondent ACIT, Circle-1, Kota, Circle-1, Kota
Appeal Type Income Tax Appeal
Pronouncement Date 30-03-2021
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 30-03-2021
Last Hearing Date 24-07-2019
First Hearing Date 24-07-2019
Assessment Year 2014-2015
Appeal Filed On 30-04-2019
Judgment Text
VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENC HES B JAIPUR JH LAANHI XKSLKBZ] U;KF;D LNL; OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI SANDEEP GOSAIN JM & SHRI VIKRAM SING H YADAV AM VK;DJ VIHY LA- @ ITA NO. 600/JP/2019 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR :2014-15 M/S SEWARD EXPORTS PVT LTD. 5-L-22 MAHAVEER NAGAR-3 KOTA CUKE VS. ASSISTANT COMMISSIONER OF INCOME-TAX CIRCLE-01 KOTA LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO. AAFCS7423M VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SH. SIDDHARTH RANKA (ADV.) & SH. SAU RAV HARSH (ADV.) JKTLO DH VKSJ LS @ REVENUE BY : SMT. RUNI PAL (ADDL. CIT) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 15/03/2021 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT: 30/03/2021 VKNS'K@ ORDER PER: VIKRAM SINGH YADAV A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF LD. CIT(A) KOTA DATED 11.02.2019 WHEREIN HE HAS CONFIR MED VARIOUS ADDITIONS MADE BY THE ASSESSING OFFICER RELEVANT FOR A.Y 2014 -15. 2. THE RELEVANT FACTS AS EMERGING FROM THE RECORDS AS WELL AS THE FINDINGS OF THE LD. CIT(A) WHICH ARE UNDER CHALLENG E BEFORE US READ AS UNDER:- GROUND NO. 3: ITA NO. 600/JP/2019 M/S SEWARD EXPORTS PVT. LTD. KOTA VS. ACIT CIRCLE -01 KOTA 2 IN THE PROFIT & LOSS ACCOUNT DIWALI EXPENSES OF RS . 38 282/ - HAS BEEN DEBITED. ON EXAMINATION IT IS NOTICED THAT THESE E XPENSES ARE NOT PROPERLY VOUCHED OR ARE SUPPORTED BY SELF-MADE VOUC HERS ONLY. FURTHER THESE EXPENSES WERE MET BY CASH PAYMENTS. THEREFORE THESE EXPENSES ARE NOT SUBJECT TO VERIFICATION. THEREFORE THE ASS ESSEE WAS ASKED VIDE ORDER SHEET ENTRY DATED 06.09.2016 TO SHOW CAUSE AS TO WHY NECESSARY DISALLOWANCE MAY NOT BE MADE OUT THE CLAIM SO MADE. THE ASSESSEE HAS NOT SUBMITTED ANYTHING SPECIFIC IN THIS REGARD. AS STATED ABOVE THE EXPENSES CLAIMED BY THE ASSESSEE ARE NOT SUBJECT TO VERIFICATION FOR WANT OF PROPER VOUCHERS AND DUE TO CASH PAYMENTS. THEREFORE IT IS CONSIDERED TO DISALLOW 5% OF THE E XPENSES OF RS.38 282/- WHICH COMES TO RS.1 914/- IS DISALLOWED TO COVER U P ANY LEAKAGE OF REVENUE ON THIS ACCOUNT. AS REGARDS THE GROUND NO 3 RELATED TO DISALLOWANCE MADE FROM DIWALI EXPENSES I HAVE GONE THROUGH ASSESSEE'S SUBMISSION AND AO'S FINDINGS. ON THE FACTS INVOLVED AND THE NATURE OF EXPENSES AS WELL AS THE PROPORTION IN WHICH THE DISALLOWANCE IS MADE TO THE TOTAL CLAI M MADE THE DISALLOWANCE IS FOUND TO BE REASONABLE & JUSTIFIED. THE SAME IS ACCORDINGLY UPHELD. THIS GROUND OF APPEAL IS TREATED AS DISMISSED. GROUND NO. 4: IN THE PROFIT & LOSS ACCOUNT THE ASSESSEE DEBITED GENERAL CARTAGE EXPENSES OF RS.99 800/ -. ON EXAMINATION IT IS NOT ICED THAT THESE EXPENSES ARE NOT PROPERLY VOUCHED OR ARE SUPPORTED BY SELF-MADE VOUCHERS ONLY. FURTHER THESE EXPENSES WERE MET BY CASH PAYMENTS. ITA NO. 600/JP/2019 M/S SEWARD EXPORTS PVT. LTD. KOTA VS. ACIT CIRCLE -01 KOTA 3 THEREFORE THESE EXPENSES ARE NOT SUBJECT TO VERIFI CATION. THEREFORE THE ASSESSEE WAS ASKED VIDE ORDER SHEET ENTRY DATED 06. 09.2016 TO SHOW CAUSE AS TO WHY NECESSARY DISALLOWANCE MAY NOT BE M ADE OUT THE CLAIM SO MADE. THE ASSESSEE HAS NOT SUBMITTED ANYTHING SPECIFIC IN THIS REGARD. AS STATED ABOVE THE EXPENSES CLAIMED BY THE ASSESSEE ARE NOT SUBJECT TO VERIFICATION FOR WANT OF PROPER VOUCHERS AND DUE TO CASH PAYMENTS. THEREFORE IT IS CONSIDERED TO DISALLOW 5% OF THE E XPENSES OF RS. 99 800/- WHICH COMES TO RS. 4 990/- IS DISALLOWED TO COVER UP ANY LEAKAGE OF REVENUE ON THIS ACCOUNT. AS REGARDS THE GROUND NO 4 RELATED TO DISALLOWANCE MADE FROM GENERAL CARTAGE EXPENSES I HAVE GONE THROUGH ASSESSEE'S SU BMISSION AND AO'S FINDINGS. LOOKING TO THE NATURE OF THESE EXPENSES SOME DISAL LOWANCE FOR NON- BUSINESS & UNVERIFIED PORTION IN THE TOTAL CLAIM WA S JUSTIFIED. THE DISALLOWANCE HAS ALREADY BEEN RESTRICTED TO 5% OF T HE TOTAL CLAIM BY THE A.0 AND IS FOUND REASONABLE AND JUSTIFIED. NO INTER FERENCE IS CALLED FOR IN THE SAME THIS GROUND OF APPEAL IS TREATED AS DISMISSED. GROUND NO. 5: IN THE PROFIT & LOSS ACCOUNT THE ASSESSEE DEBITED MATERIAL SHIFTING EXPENSES OF RS.11 93 547/ -. ON EXAMINATION IT IS NOTICED THAT THESE EXPENSES ARE NOT PROPERLY VOUCHED OR ARE SUPPORTED BY SELF-MADE VOUCHERS ONLY. FURTHER THESE EXPENSES WERE MET BY CASH PAYMENTS. ITA NO. 600/JP/2019 M/S SEWARD EXPORTS PVT. LTD. KOTA VS. ACIT CIRCLE -01 KOTA 4 THEREFORE THESE EXPENSES ARE NOT SUBJECT TO VERIFI CATION. THEREFORE THE ASSESSEE WAS ASKED VIDE ORDER SHEET ENTRY DATED 06. 09.2016 TO SHOW CAUSE AS TO WHY NECESSARY DISALLOWANCE MAY NOT BE M ADE OUT THE CLAIM SO MADE. THE ASSESSEE HAS NOT SUBMITTED ANYTHING SPECIFIC IN THIS REGARD. AS STATED ABOVE THE EXPENSES CLAIMED BY THE ASSESSEE ARE NOT SUBJECT TO VERIFICATION FOR WANT OF PROPER VOUCHERS AND DUE TO CASH PAYMENTS. THEREFORE IT IS CONSIDERED TO DISALLOW 5% OF THE E XPENSES OF RS.11 93 547/ - WHICH COMES TO RS. 59 677/ - IS D ISALLOWED TO COVER UP ANY LEAKAGE OF REVENUE ON THIS ACCOUNT. AS REGARDS THE GROUND NO 5 RELATED TO DISALLOWANCE MADE FROM MATERIAL SHIFTING EXPENSES I HAVE GONE THROUGH ASSESSEE'S S UBMISSION AND AO'S FINDINGS. LOOKING TO THE NATURE OF THESE EXPENSES SOME DISAL LOWANCE FOR NON- BUSINESS & UNVERIFIED PORTION IN THE TOTAL CLAIM WA S JUSTIFIED. HOWEVER THE SAME HAS TO BE REASONABLE. THE DISALLOWANCE IS ALRE ADY RESTRICTED TO ONLY 5% OF THE TOTAL CLAIM WHICH APPEARS REASONABLE AS W ELL AS JUSTIFIED AND IS NOT INTERFERED WITH. THIS GROUND OF APPEAL IS TREATED AS DISMISSED. GROUND NO. 6: IN THE PROFIT & LOSS ACCOUNT THE ASSESSEE DEBITED MISCELLANEOUS EXPENSES OF RS.42 776/-. ON EXAMINATION IT IS NOTICED THAT THESE EXPENSES ARE NOT PROPERLY VOUCHED OR ARE SUPPORTED BY SELF-MADE VOUC HERS ONLY. FURTHER THESE EXPENSES WERE MET BY CASH PAYMENTS. THEREFORE THESE EXPENSES ARE NOT SUBJECT TO VERIFICATION. THEREFORE THE ASS ESSEE WAS ASKED VIDE ITA NO. 600/JP/2019 M/S SEWARD EXPORTS PVT. LTD. KOTA VS. ACIT CIRCLE -01 KOTA 5 ORDER SHEET ENTRY DATED 06.09.2016 TO SHOW CAUSE AS TO WHY NECESSARY DISALLOWANCE MAY NOT BE MADE OUT THE CLAIM SO MADE. THE ASSESSEE HAS NOT SUBMITTED ANYTHING SPECIFIC IN THIS REGARD. AS STATED ABOVE THE EXPENSES CLAIMED BY THE ASSESSEE ARE NOT SUBJECT TO VERIFICATION FOR WANT OF PROPER VOUCHERS AND DUE TO CASH PAYMENTS. THEREFORE IT IS CONSIDERED TO DISALLOW 5% OF THE E XPENSES OF RS. 42 776/- WHICH COMES TO RS. 2 139/ - IS DISALLOWED TO COV ER UP ANY LEAKAGE OF REVENUE ON THIS ACCOUNT. AS REGARDS THE GROUND NO 6 RELATED TO DISALLOWANCE MADE FROM MISCELLANEOUS EXPENSES I HAVE GONE THROUGH ASSESSE E'S SUBMISSION AND AO'S FINDINGS. ON THE FACTS INVOLVED AND THE NATURE OF EXPENSES AS WELL AS THE PROPORTION IN WHICH THE DISALLOWANCE IS MADE TO THE TOTAL CLAI M MADE THE DISALLOWANCE IS FOUND TO BE REASONABLE & JUSTIFIED. THE SAME IS ACCORDINGLY UPHELD. THIS GROUND OF APPEAL IS TREATED AS DISMISSED. GROUND NO. 7: IN THE PROFIT & LOSS ACCOUNT THE ASSESSEE DEBITED REPAIRS & MAINTENANCE EXPENSES OF RS. 21 98 911/ -. ON EXAMINATION IT IS NOTICED THAT THESE EXPENSES ARE NOT PROPERLY VOUCHED OR ARE SUPPORTED BY SELF-MADE VOUCHERS ONLY. FURTHER THESE EXPENSES TO THE EXTEN T OF RS. 63 771/ - WERE PAID FULLY IN CASH. THEREFORE THESE EXPENSES ARE NOT SUBJECT TO VERIFICATION. THEREFORE THE ASSESSEE WAS ASKED VID E ORDER SHEET ENTRY DATED 06.09.2016 TO SHOW CAUSE AS TO WHY NECESSARY DISALLOWANCE MAY NOT BE MADE OUT THE CLAIM SO MADE. ITA NO. 600/JP/2019 M/S SEWARD EXPORTS PVT. LTD. KOTA VS. ACIT CIRCLE -01 KOTA 6 THE ASSESSEE HAS NOT SUBMITTED ANYTHING SPECIFIC IN THIS REGARD. AS STATED ABOVE THE EXPENSES CLAIMED BY THE ASSESSEE ARE NOT SUBJECT TO VERIFICATION FOR WANT OF PROPER VOUCHERS AND DUE TO SOME CASH PAYMENTS. THEREFORE IT IS CONSIDERED TO DISALLOW 5% OF THE E XPENSES OF RS. 21 98 911/- WHICH COMES TO RS. 1 09 946/- IS DISAL LOWED TO COVER UP ANY LEAKAGE OF REVENUE ON THIS ACCOUNT. I HAVE GONE THROUGH ASSESSEES SUBMISSION AND AOS FINDINGS. AS REGARDS THE GROUND NO 7 CONSIDERING THE NATURE OF THE EXPENSES QUANTUM OF THE DISALLOWANCE MADE AND THE REASONS GI VEN BY THE AO THE DISALLOWANCE IS BEING RESTRICTED ON A MORE REASONAB LE BASIS TO RS. 50 000/- TO TAKE CARE OF ANY PILFERAGE DUE TO CASH AND NON B USINESS RELATED EXPENSES. THE BALANCE DISALLOWANCE IS TO BE DELETED . THIS GROUND OF APPEAL IS TREATED AS PARTLY ALLOWED. 3. DURING THE COURSE OF HEARING THE LD. AR SUBMITT ED THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF PROCESSING & EXPORTS OF STONES. DURING THE YEAR UNDER CONSIDERATION IT HAS REPORTED A TOTAL T URNOVER OF RS. 25 10 35 845/- DISCLOSING GROSS PROFIT OF RS. 9 46 15 152/- THEREBY REPORTING GROSS PROFIT OF 37.69% WHICH IS AMONGST T HE HIGHEST TOP THREE IN THE INDUSTRY. IT WAS SUBMITTED THAT VARIOUS ADDITIO NS HAVE BEEN MADE BY THE ASSESSING OFFICER FOR THE REASON THAT THE EXPEN SES HAVE BEEN MET BY CASH PAYMENT. IT WAS SUBMITTED THAT GIVEN THE NATUR E OF THE ASSESSEES BUSINESS IT IS BUT NATURAL THAT THE ASSESSEE IS RE QUIRED TO INCUR CERTAIN EXPENDITURE THROUGH CASH IN TERMS OF MAKING PAYMENT TOWARDS CARTAGE MATERIAL SHIFTING REPAIR & MAINTENANCE ETC. IT WAS SUBMITTED THAT THERE IS NOTHING UNDER LAW THAT THE ASSESSEE CANNOT INCUR EX PENDITURE IN CASH SO LONG AS TEST OF BUSINESS EXPEDIENCY IS SATISFIED IN THE GIVEN CASE. IT WAS SUBMITTED THAT DURING THE YEAR UNDER CONSIDERATION IT IS NOT THE CASE THAT ITA NO. 600/JP/2019 M/S SEWARD EXPORTS PVT. LTD. KOTA VS. ACIT CIRCLE -01 KOTA 7 ALL OF THE EXPENSES HAVE BEEN INCURRED IN CASH HOWE VER ONLY VERY SMALL PERCENTAGE OF EXPENSES HAVE BEEN INCURRED IN CASH W HICH ARE DULY SUPPORTED BY VOUCHERS AS WELL AS ENTRIES MADE AND D ULY RECORDED IN THE BOOKS OF ACCOUNTS. COMING TO THE SPECIFICS OF THE EXPENDITURE SO INCURRED AND UNDER CONSIDERATION IT WAS SUBMITTED THAT OUT OF TOTAL DIWALI EXPENSES EXPENSES OF RS. 38 282/- EXPENDITURE OF ONLY RS. 82 82/- HAS BEEN INCURRED IN CASH AND THE RELEVANT DETAILS OF THE SAID CASH E XPENDITURE IS DULY SUBMITTED DURING THE COURSE OF ASSESSMENT PROCEEDIN GS. SIMILARLY OUT OF TOTAL GENERAL CARTAGE EXPENSES OF RS. 99 800/- ONL Y EXPENSES OF RS. 30 350/- HAVE BEEN INCURRED IN CASH. REGARDING REPA IRS AND MAINTENANCE EXPENSES IT WAS SUBMITTED THAT OUT OF RS. 21 98 91 1/- THE ASSESSEE HAS ONLY INCURRED EXPENDITURE OF RS. 60 576/- IN CASH W HEREAS AN AMOUNT OF RS. 1 09 946/- HAS BEEN DISALLOWED BY THE ASSESSING OFFICER. IT WAS ACCORDINGLY SUBMITTED THAT MERELY BECAUSE THE EXPEN DITURE HAS BEEN INCURRED IN CASH SO LONG AS THE SAME HAS BEEN INCU RRED FOR THE PURPOSES OF BUSINESS AND IS DULY SUPPORTED BY VOUCHERS AND E NTRIES IN THE BOOKS OF ACCOUNTS THE SAME CANNOT BE DISALLOWED. FURTHER I T WAS SUBMITTED THAT NO SPECIFIC EXPENDITURE HAS BEEN HIGHLIGHTED BY THE ASSESSING OFFICER WHICH HAS NOT BEEN INCURRED FOR THE PURPOSES OF THE BUSINESS. IT WAS ACCORDINGLY SUBMITTED THAT THE DISALLOWANCE SO MADE BY THE ASSESSING OFFICER ARE CLEARLY AD-HOC IN NATURE AND THE SAME M AY BE DIRECTED TO BE DELETED. 4. PER CONTRA THE LD. DR RELIED ON THE FINDINGS O F THE ASSESSING OFFICER AND IT WAS SUBMITTED THAT THE EXPENSES HAVE BEEN DI SALLOWED FOR THE REASON THAT NO PROPER VOUCHERS HAVE BEEN SUBMITTED FOR VERIFICATION AND THE PAYMENTS HAVE BEEN MADE IN CASH. THESE EXPENSES ARE NOT PROPERLY VOUCHED OR ARE SUPPORTED BY SELF-MADE VOUCHERS ONLY . FURTHER THE EXPENSES HAVE BEEN INCURRED IN CASH. THEREFORE THE SE EXPENSES ARE NOT ITA NO. 600/JP/2019 M/S SEWARD EXPORTS PVT. LTD. KOTA VS. ACIT CIRCLE -01 KOTA 8 SUBJECT TO VERIFICATION. THE ASSESSING OFFICER HAS BEEN REASONABLE ENOUGH TO DIALLOW ONLY 5% OF THE SAID EXPENDITURE AND WHIC H HAS RIGHTLY BEEN CONFIRMED BY THE LD. CIT(A). SHE ACCORDINGLY SUPPOR TED THE ORDER AND FINDINGS OF THE LOWER AUTHORITIES. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. FIRSTLY IT IS NOTED THAT THE ASSESSING OFFICER HAS DISALLOWED 5% OF THE LOADING AND UNLOADING EXPENSES WHICH HAVE BEEN DELETED BY THE LD. CIT(A). THOUGH THE SAME IS NOT THE SUBJECT MATTER OF PRESENT DISPUTE HOWEVER IT IS RELEVANT TO CONSIDE R THE FINDINGS OF THE LD. CIT(A) WHEREIN HE HAS STATED THAT THE AO HAS NO T BEEN ABLE TO BRING EXAMPLES OF SPECIFIC DISALLOWABLE EXPENSES AMONG TH IS CATEGORY AND IF THE BOOKS OF ACCOUNTS WERE NOT RELIABLE BECAUSE OF CASH OR SELF MADE VOUCHERS HE SHOULD HAVE REJECTED THE SAME U/S 145( 3) AND IN ABSENCE OF THE SAME HE IS SATISFIED WITH THE EXPLANATION G IVEN BY THE ASSESSEE AND THE DISALLOWANCE SO MADE BY THE ASSESSING OFFIC ER APPEARS TO BE UNNECESSARY AND THE SAME WAS DIRECTED TO BE DELETED . HOWEVER REGARDING OTHER DISALLOWANCES MADE BY THE ASSESSING OFFICER WHICH HAVE BEEN SUSTAINED BY THE LD. CIT(A) AND ARE SUBJE CT MATTER OF DISPUTE BEFORE US THOUGH THE FINDING OF THE ASSESSING OFF ICER ARE MORE OR LESS SIMILAR AS IN THE CASE OF DISALLOWANCES OF LOADING AND UNLOADING EXPENSES HOWEVER THE LD. CIT(A) HAS SUSTAINED THE SAME HOLDING THAT ON THE FACTS INVOLVED AND THE NATURE OF EXPENSES AS WELL AS THE PROPORTION IN WHICH THE DISALLOWANCE IS MADE TO THE TOTAL CLAIM MADE THE DISALLOWANCE IS FOUND TO BE REASONABLE & JUSTIF IED. WE THEREFORE FIND THAT THERE ARE INCONSISTENCIES IN THE FINDINGS OF THE LD. CIT(A) WHERE AT FIRST PLACE HE HAS HELD THAT THE ASSESSIN G OFFICER HAS NOT ABLE TO BRING ANY EXAMPLE OF SPECIFIC DISALLOWABLE EXPEN SES IN CASE OF ITA NO. 600/JP/2019 M/S SEWARD EXPORTS PVT. LTD. KOTA VS. ACIT CIRCLE -01 KOTA 9 LOADING AND UNLOADING EXPENSES AND UNDER THE SIMILA R FACTS PATTERN WHERE THE DISALLOWANCES HAVE AGAIN BEEN MADE BY THE ASSESSING OFFICER IN RESPECT OF OTHER EXPENSES WITHOUT BRINGING ANY S PECIFIC DISALLOWABLE EXPENSES HE HAS SUSTAINED THESE DISALLOWANCES. THE REFORE ON THIS ACCOUNT AND IN ABSENCE OF THE SPECIFIC FINDING RECO RDED BY EITHER OF THE AUTHORITIES THAT THE EXPENSES HAVE NOT BEEN INCURRE D WHOLLY OR EXPENSIVE FOR THE PURPOSE OF BUSINESS OR ARE BOGUS IN NATURE MERELY BECAUSE EXPENSES INCURRED IN CASH AND SUPPORTED BY SELF MADE VOUCHERS CANNOT BE A BASIS FOR MAKING THE DISALLOWA NCE IN THE HANDS OF THE ASSESSEE. THE LD DR HAS CONTENDED THAT ONLY 5% OF THE EXPENSES HAVE BEEN DISALLOWED HOWEVER IF WE LOOK AT THE BA SIS OF SUCH DISALLOWANCE WHICH IS CASH PAYMENT AND IN SUCH A SI TUATION AS A PERCENTAGE OF EXPENSES INCURRED IN CASH THE DISALL OWANCE COMES TO 29% AS CONTENDED BY THE LD AR. IN OUR VIEW THE IS SUE IS NOT ABOUT THE PERCENTAGE OF EXPENSES RATHER THE REAL ISSUE IS WHE THER THE EXPENSES SO DISALLOWED HAVE BEEN INCURRED FOR THE PURPOSES OF B USINESS OR NOT. THERE IS NO FINDING BY EITHER OF THE AUTHORITIES TH AT THE EXPENSES HAVE NOT BEEN INCURRED FOR THE PURPOSES OF BUSINESS OR T HE TEST OF BUSINESS EXPEDIENCY HAS NOT BEEN SATISFIED. WE ARE THEREFOR E OF THE CONSIDERED VIEW THAT THE EXPENSES HAVE BEEN DISALLOWED FOR THE SAKE OF MAKING THE DISALLOWANCES WITHOUT BRINGING ON RECORD ANY SPECIF ICS OF DISALLOWABLE EXPENSES AS NOT INCURRED FOR THE PURPOSES OF BUSINE SS AND THEREFORE THE DISALLOWANCES SO MADE ARE CLEARLY AD-HOC IN NAT URE WHICH CANNOT BE SUSTAINED IN THE EYES OF LAW AND THE SAME ARE HEREB Y DIRECTED TO BE DELETED. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWE D. ITA NO. 600/JP/2019 M/S SEWARD EXPORTS PVT. LTD. KOTA VS. ACIT CIRCLE -01 KOTA 10 ORDER PRONOUNCED IN THE OPEN COURT ON 30/03/2021. SD/- SD/- LANHI XKSLKBZ FOE FLAG ;KNO ( SANDEEP GOSAIN ) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 30/03/2021 * GANESH KR. VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- M/S SEWARD EXPORTS PVT LTD. KOTA 2. IZR;FKHZ@ THE RESPONDENT- ACIT CIRCLE-01 KOTA 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. 600/JP/2019} VKNS'KKUQLKJ@ BY ORDER LGK;D IATHDKJ@ ASST. REGISTRAR