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Judgment
The present appeal has been filed by the assessee against the order of National Faceless Appeal Centre (NFAC), Delhi dated 13.03.2023.
Following grounds have been raised by the assessee:
“1. That the Ld. Assessing Officer and the honourable Commissioner of Income-tax (Appeals) is unjustified in making an addition of Rs. 18,39,449/- on account of the disallowance of Travelling and conveyance expenses and Miscellaneous expenses. The addition made by the Ld. Assessing Officer and upheld by the honourable Commissioner of Income-tax (Appeals) is not justified and warranted in the case of the appellant.”
The assessee filed return of income declaring loss of Rs.3,85,71,158/- which has been assessed at loss of Rs.3,66,86,204/- after disallowing expenses on account of travelling and conveyance expenses of Rs.18,37,315/- being 30% of the amount of Rs.61,24,385/- in the absence of vouchers and other supporting evidences.
Aggrieved, the assessee filed appeal before the ld. CIT(A) who affirmed the order of the Assessing Officer.
Aggrieved, the assessee filed appeal before the ITAT.
During the hearing before us, the assessee has submitted compilation consisting of 42 pages with regard to travel expenses and paid to tour & travel operators.
The ld. AR submitted that though all the details have been furnished, some vouchers could not be made available before the revenue authorities and fairly agreed for disallowance @ 5% on the amount of Rs.61,24,385/-.
The ld. DR relied on the order of the ld. CIT(A).
On going through the entire details and keeping in view the tax implication, we agree with the ld. AR’s submission and direct that the disallowance be computed @ 5% on the amount of Rs.61,24,385/-.
In the result, the appeal of the assessee is allowed for statistical purpose.