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IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH “A”, LUCKNOW ITA No.615/LKW/2014 Assessment Year:2009-10
Mukesh Kumar Mahawar (Appellant) v. Income Tax Officer (Respondent) ORDER PER SUNIL KUMAR YADAV: This appeal is preferred by the assessee against the order of the ld. CIT(A) on a solitary ground that the ld. CIT(A) has erred in confirming the ad hoc disallowance of Rs.2.50 lakhs made by the Assessing Officer. 2. During the course of hearing, the ld. counsel for the assessee has invited our attention that the Assessing Officer has made ad hoc disallowance of Rs.2.50 lakhs to the total income of the assessee on the ground that the expenses claimed by the assessee are not fully verifiable, as no vouchers have been produced in respect of few expenses for verification. The ld. counsel for the assessee has further contended that if the Assessing Officer is not satisfied in a particular item of expenses, he could have made disallowance of the same after making verification, but ad hoc disallowance is not permissible under the law. 3. The ld. D.R., on the other hand, has placed reliance upon the order of the ld. CIT(A). 4. Having carefully examined the orders of the lower authorities in the light of the rival submissions, we are of the view that the ad hoc disallowance is not permissible under the law and if the Assessing Officer is not satisfied with a particular expense, he may make necessary verification and also to point out defect in the books of account, but ad hoc disallowance should not be made by making general observation. In the instant case, since ad hoc disallowance is made by making general observation, we do not find any merit in the addition made by the Assessing Officer. We accordingly delete the addition made on ad hoc basis after setting aside the order of the ld. CIT(A). 5. In the result, appeal of the assessee is allowed. Order was pronounced in the open court on the date mentioned on the captioned page. Sd/- Sd/-
[A. K. GARODIA] [SUNIL KUMAR YADAV] DATED: 16th September, 2015
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