Points to be included in statement of facts and grounds of a
This query is : Resolved
19 August 2011
Hi,
Can u help me by sending a draft sample format of points to be included in filing
"statement of facts and grounds of appeal" before CIT(A)
in case of addition of brokerage paid to different dalal which is being paid through cheque (if assessee is cloth merchant)) made by the assessing officer on account of non production of vouchers.
2.in case of addition of travelling & telephone exp. due to exp. not related to business
pleae reply as soon as possible
thanks in advance.
Can u help me by sending a draft sample format of points to be included in filing
"statement of facts and grounds of appeal" before CIT(A)
in case of addition of brokerage paid to different dalal which is being paid through cheque (if assessee is cloth merchant)) made by the assessing officer on account of non production of vouchers.
2.in case of addition of travelling & telephone exp. due to exp. not related to business
pleae reply as soon as possible
thanks in advance.
19 August 2011
sir plesae solve my querry quickly as possible
10 August 2024
Certainly! When preparing a "Statement of Facts and Grounds of Appeal" before the Commissioner of Income Tax (Appeals) [CIT(A)], it is crucial to present your case clearly and logically. Below is a draft sample format for both scenarios you've mentioned:
---
### Draft Sample Format: Statement of Facts and Grounds of Appeal
#### **1. Addition of Brokerage Paid to Different Dalal**
**Statement of Facts:**
1. **Background of the Case:**
- The appellant is a cloth merchant engaged in the business of selling and purchasing cloths. During the assessment year [AY], the appellant had paid brokerage to various dalals (brokers) for facilitating the transactions.
2. **Issue in Dispute:**
- The Assessing Officer (AO) made an addition to the income of the appellant by disallowing the brokerage expense. This addition was made on the grounds that the vouchers/receipts for the brokerage payments were not produced during the assessment proceedings.
3. **Details of the Disallowance:**
- The total amount of brokerage disallowed was [₹ Amount]. The AO noted that the appellant failed to produce vouchers, despite the payments being made through cheques.
4. **Facts Supporting the Claim:**
- All brokerage payments were made through proper banking channels, and payments were reflected in the bank statements.
- The brokers are genuine and were engaged for the purpose of facilitating transactions.
- The appellant had submitted the relevant bank statements and other supporting documents showing the payments to brokers.
5. **Additional Evidence Submitted:**
- Since the assessment order, the appellant has gathered additional evidence and documents, including bank statements and agreements with brokers, which substantiate the brokerage payments.
**Grounds of Appeal:**
1. **Ground 1: Non-consideration of Evidence**
- The AO erred in disallowing the brokerage expense solely based on the non-production of vouchers, without considering the payments made through cheques and the substantial documentary evidence provided.
2. **Ground 2: Adherence to Accounting Standards**
- The appellant complied with the accounting standards and the Income Tax Act provisions by making payments through cheques. The disallowance is unjustified as the transactions are legitimate and verifiable through bank records.
3. **Ground 3: Procedural Fairness**
- The AO did not provide an adequate opportunity for the appellant to explain or furnish the necessary vouchers and supporting documents before making the disallowance.
4. **Ground 4: Reliance on Bank Statements**
- The reliance on bank statements should be considered sufficient proof of the payments made. The absence of physical vouchers should not invalidate the otherwise verifiable payments.
#### **2. Addition of Travelling & Telephone Expenses**
**Statement of Facts:**
1. **Background of the Case:**
- The appellant incurred expenses on travel and telephone for the business operations during the assessment year [AY].
2. **Issue in Dispute:**
- The AO disallowed a portion of the travelling and telephone expenses on the grounds that they were not related to the business.
3. **Details of the Disallowance:**
- The total amount of travelling and telephone expenses disallowed was [₹ Amount]. The AO observed that some of the expenses were not supported by adequate documentation or were deemed personal.
4. **Facts Supporting the Claim:**
- All expenses incurred were for business purposes, and the appellant has maintained detailed records and documentation for these expenses.
- The appellant provided a log of travel and telephone bills, demonstrating that the expenses were related to business activities.
5. **Additional Evidence Submitted:**
- The appellant has submitted additional documentation and explanations to clarify the nature of the expenses and their business relevance.
**Grounds of Appeal:**
1. **Ground 1: Justification of Expenses**
- The AO erred in disallowing expenses without considering the detailed log and documentation provided by the appellant, which demonstrates that the expenses were for business purposes.
2. **Ground 2: Misinterpretation of Evidence**
- The AO misinterpreted the nature of the expenses and did not take into account the nature of the business operations that required such expenses.
3. **Ground 3: Adherence to Accounting Principles**
- The expenses were incurred in the normal course of business and adhere to standard accounting principles. The disallowance is unwarranted as the expenses are ordinary and necessary for the business.
4. **Ground 4: Absence of Personal Use Evidence**
- There is no direct evidence proving that the disallowed expenses were personal or non-business-related. The appellant's records should be considered adequate for the purpose of verification.
---
### Tips for Preparing Your Appeal:
1. **Be Clear and Concise:** Ensure your statement of facts and grounds are clear and concise. Avoid unnecessary details and focus on the key points.
2. **Provide Supporting Documents:** Attach all relevant documents and evidence that support your case. This includes bank statements, vouchers, contracts, and any additional evidence.
3. **Follow Legal Provisions:** Refer to the relevant sections of the Income Tax Act and provide legal references where applicable to strengthen your appeal.
4. **Professional Tone:** Maintain a professional tone throughout the statement and grounds of appeal.
Feel free to modify the format and content as per the specifics of your case and the details available.
---
### Draft Sample Format: Statement of Facts and Grounds of Appeal
#### **1. Addition of Brokerage Paid to Different Dalal**
**Statement of Facts:**
1. **Background of the Case:**
- The appellant is a cloth merchant engaged in the business of selling and purchasing cloths. During the assessment year [AY], the appellant had paid brokerage to various dalals (brokers) for facilitating the transactions.
2. **Issue in Dispute:**
- The Assessing Officer (AO) made an addition to the income of the appellant by disallowing the brokerage expense. This addition was made on the grounds that the vouchers/receipts for the brokerage payments were not produced during the assessment proceedings.
3. **Details of the Disallowance:**
- The total amount of brokerage disallowed was [₹ Amount]. The AO noted that the appellant failed to produce vouchers, despite the payments being made through cheques.
4. **Facts Supporting the Claim:**
- All brokerage payments were made through proper banking channels, and payments were reflected in the bank statements.
- The brokers are genuine and were engaged for the purpose of facilitating transactions.
- The appellant had submitted the relevant bank statements and other supporting documents showing the payments to brokers.
5. **Additional Evidence Submitted:**
- Since the assessment order, the appellant has gathered additional evidence and documents, including bank statements and agreements with brokers, which substantiate the brokerage payments.
**Grounds of Appeal:**
1. **Ground 1: Non-consideration of Evidence**
- The AO erred in disallowing the brokerage expense solely based on the non-production of vouchers, without considering the payments made through cheques and the substantial documentary evidence provided.
2. **Ground 2: Adherence to Accounting Standards**
- The appellant complied with the accounting standards and the Income Tax Act provisions by making payments through cheques. The disallowance is unjustified as the transactions are legitimate and verifiable through bank records.
3. **Ground 3: Procedural Fairness**
- The AO did not provide an adequate opportunity for the appellant to explain or furnish the necessary vouchers and supporting documents before making the disallowance.
4. **Ground 4: Reliance on Bank Statements**
- The reliance on bank statements should be considered sufficient proof of the payments made. The absence of physical vouchers should not invalidate the otherwise verifiable payments.
#### **2. Addition of Travelling & Telephone Expenses**
**Statement of Facts:**
1. **Background of the Case:**
- The appellant incurred expenses on travel and telephone for the business operations during the assessment year [AY].
2. **Issue in Dispute:**
- The AO disallowed a portion of the travelling and telephone expenses on the grounds that they were not related to the business.
3. **Details of the Disallowance:**
- The total amount of travelling and telephone expenses disallowed was [₹ Amount]. The AO observed that some of the expenses were not supported by adequate documentation or were deemed personal.
4. **Facts Supporting the Claim:**
- All expenses incurred were for business purposes, and the appellant has maintained detailed records and documentation for these expenses.
- The appellant provided a log of travel and telephone bills, demonstrating that the expenses were related to business activities.
5. **Additional Evidence Submitted:**
- The appellant has submitted additional documentation and explanations to clarify the nature of the expenses and their business relevance.
**Grounds of Appeal:**
1. **Ground 1: Justification of Expenses**
- The AO erred in disallowing expenses without considering the detailed log and documentation provided by the appellant, which demonstrates that the expenses were for business purposes.
2. **Ground 2: Misinterpretation of Evidence**
- The AO misinterpreted the nature of the expenses and did not take into account the nature of the business operations that required such expenses.
3. **Ground 3: Adherence to Accounting Principles**
- The expenses were incurred in the normal course of business and adhere to standard accounting principles. The disallowance is unwarranted as the expenses are ordinary and necessary for the business.
4. **Ground 4: Absence of Personal Use Evidence**
- There is no direct evidence proving that the disallowed expenses were personal or non-business-related. The appellant's records should be considered adequate for the purpose of verification.
---
### Tips for Preparing Your Appeal:
1. **Be Clear and Concise:** Ensure your statement of facts and grounds are clear and concise. Avoid unnecessary details and focus on the key points.
2. **Provide Supporting Documents:** Attach all relevant documents and evidence that support your case. This includes bank statements, vouchers, contracts, and any additional evidence.
3. **Follow Legal Provisions:** Refer to the relevant sections of the Income Tax Act and provide legal references where applicable to strengthen your appeal.
4. **Professional Tone:** Maintain a professional tone throughout the statement and grounds of appeal.
Feel free to modify the format and content as per the specifics of your case and the details available.
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