Principal Commissioner Of Income Tax 2 v. Hitachi Homes And Solutions (I) Ltd. ==========================================================

C/TAXAP/1239/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1239 of 2018 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX 2VersusHITACHI HOMES AND SOLUTIONS (I) LTD.========================================================== Appearance:MRS MAUNA M BHATT(174) for the PETITIONER(s) No. 1 for the RESPONDENT(s) No. 1========================================================== CORAM: HONOURABLE MR.JUSTICE AKIL KURESHI andHONOURABLE MR.JUSTICE B.N. KARIA Date : 09/10/2018 ORAL ORDER (PER : HONOURABLE MR.JUSTICE AKIL KURESHI) 1.Revenue is in appeal against the judgment of the Income Tax Appellate Tribunal dated 18.04.2018 raising following questions for our consideration: “[A] Whether the Appellate Tribunal has erred in law and on facts by upholding the decision of CIT(A) of deleting the addition madebyAssessingOfficerof Rs.2,58,61,384/- by disallowing the expenses claimed by the assessee for provision of one year warranty? [B]Whether the Appellate Tribunal has erred in law and on facts by upholding the decision of CIT(A) of deleting the addition madebyAssessingOfficerof Rs.2,12,24,500/- on ad-hoc10% disallowance of various expenditure in absence of bills and vouchers for the same?” 2. Question-A pertains to disallowance of expenditure of Rs.2.58 crores (rounded off) made by C/TAXAP/1239/2018 ORDER the Assessing Officer. Commissioner of Income Tax (Appeals) and the Tribunal deleted the same. This expenditure related to the maintenance and repair charges expended by the assessee on Air Conditioner units supplied to the customers. The Commissioner of Income Tax (Appeals) in particular believed that this was based on actual cost involved in rendering such past sale services. 3.Question-B pertains to ad-hoc disallowance of 10% made by the Assessing Officer on the ground that the assessee had not produced bills and vouchers for the expenditure. Commissioner of Income Tax (Appeals) allowed additional evidence to be produced at the appellate stage, call for the remand report and came to the conclusion that all expenditure were duly reflected. No question of law arises. 4.In the result, Tax Appeal is dismissed. (AKIL KURESHI, J) (B.N. KARIA, J)