1. These two appeals by the assessee are directed against two separate orders dated 14.03.2018 & 10.05.2018 passed by Commissioner of Income Tax (Appeals), Allahabad for the assessment years 2013-14 & 2014-15. The assessee has raised common grounds in these two appeals. The grounds raised for the assessment year 2013-14 are as under:
"1. BECAUSE, on the facts and in the circumstances of the case, the impugned order passed by the Ld. CIT (A), confirming the illegal addition made by the AO for Rs. 6,26,811/-, by disallowing expenditure incurred by the assessee under the head "Rent" is patently illegal and bad in law. The expenditure incurred by the assessee is purely for the purpose of business and payment of Rent has not been found to be excessive or unreasonable by the authorities below by citing any comparable rates.
2. BECAUSE, on the facts and in the circumstances of the case, the impugned order passed by the Ld. CIT (A), confirming the illegal addition made by the AO for Rs. 6,26,811/-, is further unsustainable in law since there is no material cited or brought on record by any of the authorities below that the expenditure incurred by the assessee is not for the purpose of his business. It is judicially settled that Revenue authorities cannot sit in judgment over the business acumen of an assessees as to decide upon the commercial/business expediency or relevancy of expenditure. The observations made by the AO, as confirmed by the Ld. CIT(A), to the effect that enhanced Rent expenditure is without business expediency and constituting the foundation for the instant addition are extraneous to record, without material and wholly unwarranted.
3. RECAUSE, on the facts and in the Circumstances of the case, the impugned order passed by the Ld. CIT (A), confirming the illegal addition made by the AO for Rs. 6,26,811/-, is further unsustainable in law since the Revenue has itself accepted expenditure under the head "Rent" in the previous assessment year and the business turnover of the instant assessee has increased from Rs. 5.90,76,404/- to 14,69,28,769/- during the current assessment year and hence there is enough evidence to demonstrate the business expediency in incurring the additional rent. Further, the authorities have not considered the explanation furnished by the assessee, i.e.
1. The proximity of the shop from home.
2. The need for a nearby bank and food establishment.
3. The nearness of the target market, the cost of delivering the goods, the nature of product traded by the appellant, availability of transport and service infrastructure, easy accessibility to godowns by different modes of transport, transportation cost, availability of labour for unloading and loading of paper, safety of goods from fire, flood and moisture etc., location convenient for key employees, sales potential; accessibility; pedestrian traffic; the terms of occupancy; and above all the cordial relationship with the landlords were the important factors in deciding the location of godowns and the amount of rent paid for space taken on rent.
4. BECAUSE, on the facts and in the circumstances of the case, the impugned order passed by the Ld. CIT (A), confirming the illegal addition made by the AO for Rs. 6,26,811/-, is further unsustainable in law since the determination of Rate of Rent by applying an Average Rent Rate is patently illegal and unknown to Law. Rent is determined upon negotiations between the transacting parties and is based on evidence in the shape of Rent Agreement/Contract. It is judicially settled that suspicion, no matter how strong it maybe, cannot substitute evidence. The authorities are hence not justified in ignoring evidence and substituting the same with some hypothetical calculations.
5. BECAUSE, on the facts and in the Circumstances of the case, the impugned order passed by the Ld. CIT (A), confirming the illegal addition made by the AO for Rs. 6,26,811/-, is plain arbitrary and purely based on conjectures.
6. The humble assessee, craves for leave add/amend any other ground with the prior permission of the Hon'ble Tribunal."