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The assessee failed to rebut the finding of the Ld. CIT(A) regarding the self made vouchers made by the assessee which were not found to be verifiable. In absence of any scope of verification by the Assessing Officer of the relevant expenses claimed, a lump sum disallowance made by the Assessing Officer cannot be treated as unreasonable.

Shanti Prime Publication Pvt. Ltd.

Section 143 of Income Tax Act, 1961— In the instant case, the appeal by the Revenue is directed against order passed by CIT(A) in respect of tax effect involved in the appeal
Held that— The tax effect involved in the appeal being less than the prescribed monetary limit of Rs. 50 Lakhs, the Department was required to withdraw this appeal or not pressed if not falling under exclusion provided in para 10 of circular No. 3/2018 as amended on 20/08/2018. Accordingly, the appeal of the Revenue is dismissed as infructuous with liberty to file application for recall, if found to be covered by the exceptions provided in Circular No.3/2018 as amended on 20/08/2018.

In ground No. 1, the assessee has challenged addition of Rs. 38 lakh towards ‘Chilling Charge’ as sustained by the Ld. CIT(A).
The issue in dispute is whether the ‘chilling’ expenses of Rs. 38 lakhs disallowed by the Revenue Authorities are genuine and incurred wholly and exclusively for the purpose of the business of the assessee.

Held that—the assessee could not justify as why huge sums of cash payments have been made to the industrial units engaged in chilling process. As the assessee has failed to rebut any of the finding of the Ld. CIT(A) with cogent evidences, we do not find any error in the order of the Ld. CIT(A) on the issue in dispute and accordingly, we uphold the same.

The ground No. 2 of the appeal is regarding disallowance of Rs. 1,02,232/- for depreciation on ‘Tetra Pack’ machine.

Held that—According to department the machine was put to use by the assessee for less than 180 days and, thus, assessee was entitled for half of the depreciation admissible for the entire year.

we do not find any error in the order of the Ld. CIT(A) on the issue in dispute and accordingly, we uphold the same. The ground No. 2 of the appeal of the assessees is dismissed.

The ground No. 3 of the appeal relates to disallowance of Rs. 2,50,000/- on account of repair and maintenance of machinery, generator running and maintenance and miscellaneous expenses.

Held that—the assessee failed to rebut the finding of the Ld. CIT(A) regarding the self made vouchers made by the assessee which were not found to be verifiable. In absence of any scope of verification by the Assessing Officer of the relevant expenses claimed, a lump sum disallowance made by the Assessing Officer cannot be treated as unreasonable. Accordingly, we uphold the finding of the Ld. CIT(A) on the issue in dispute and the ground of the appeal is accordingly dismissed.[DCIT, CIRCLE-12 (1) , NEW DELHI VERSUS M/S. G.K. DIARY & MILK PRODUCTS PVT. LTD. AND (VICE-VERSA)] [2019] 17 ITCD Online (22) [ITAT DELHI]

The assessee failed to rebut the finding of the Ld. CIT(A) regarding the self made vouchers made by the assessee which were not found to be verifiable. In absence of any scope of verification by the Assessing Officer of the relevant expenses claimed, a lump sum disallowance made by the Assessing Officer cannot be treated as unreasonable.

Shanti Prime Publication Pvt. Ltd.

The ground No. 2 of the appeal is regarding disallowance of Rs. 1,02,232/- for depreciation on ‘Tetra Pack’ machine.

Held that—According to department the machine was put to use by the assessee for less than 180 days and, thus, assessee was entitled for half of the depreciation admissible for the entire year.

we do not find any error in the order of the Ld. CIT(A) on the issue in dispute and accordingly, we uphold the same. The ground No. 2 of the appeal of the assessees is dismissed.

The ground No. 3 of the appeal relates to disallowance of Rs. 2,50,000/- on account of repair and maintenance of machinery, generator running and maintenance and miscellaneous expenses.