Supreme court dismisses SLP against HC's ruling deleting adhoc disallowance of exp

Supreme court dismisses SLP against HC's ruling deleting adhoc disallowance of exp : Supreme Court has dismissed SLP against HC's ruling deleting adhoc disallowance of expense in matter ofPr. CIT v. R. G. Buildwell Engineers Ltd. Supreme Court in the case of Pr. CIT v. R. G. Buildwell Engineers Ltd. in SLP(C) Diary No. 34335 of 2018 The summary of the case is as given below : Assessee has claimed deduction of expenses towards bricks, machinery repair, cartage etc. and labour expenses. Assessing Officer disallowed 10% of said expenses on ground that insufficient evidence was adduced. The ITAT set aside said ad hoc disallowance by AO on two grounds: (i) assessee's books of accounts were not rejected by the AO and (ii) similar expenses were allowed to assessee consistently in the past years in scrutiny assessments The High Court was of the opinion that the principal reasoning of the ITAT, i.e. omission to reject the books of account, in which event the adhoc disallowance could have been adjusted and also the historical treatment of such expenses, cannot be termed as unreasonable; and upheld the order of ITAT. Click here to download the Order of High Court Considering the above facts, SLP filed by Revenue against view taken by High Court was dismissed by the Supreme Court.

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UPON hearing the counsel the Court made the following

O R D E R

Delay condoned.

The Special Leave Petition is dismissed.

Pending application(s), if any, stands disposed of accordingly.

Click here download the Order of Supreme Court

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