No disallowance merely because vouchers was fresh not faded or torn

No disallowance merely because vouchers was fresh not faded or torn. When self made vouchers not found false, no addition can be made on presumption

ABCAUS Case Law Citation:
ABCAUS 2717 (2019) (01) ITAT

This appeal was filed by the assessee against the order of the Commissioner of Income-tax (Appeals) in sustaining the disallowance of business promotion expenses made by the Assessing Officer (AO).  

The AO had disallowed business promotion expenses on the ground that they were supported by self-vouchers, self made vouchers and some third party vouchers, which appeared to have been cooked up.

As per the Assessing Officer, the vouchers submitted appeared fresh, neither faded nor torn. Therefore the AO made the impugned disallowance.  

The CIT(A) confirmed the disallowance as non-genuine business promotion expenses on the ground that there was no further supporting documents.

Before the Tribunal, the assessee submitted that all the evidences had been produced, which were in the form of vouchers, and none of the vouchers were found to be false and the disallowances had been made on presumptions.

The Tribunal observed that the disallowances was made by the Assessing Officer and confirmed by the CIT(A) was only on the basis of presumptions whereas an assessment order cannot be made on presumptions and assumptions.

The Tribunal noted that it was not the case that the assessee had not produced vouchers. The assessee had produced them and just because the Assessing Officer suspected the same, there could not be any disallowance.

Accordingly, the ITAT deleted the disallowance made by the Assessing Officer and confirmed by the CIT(A)

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