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2013 (4) TMI 314 - ITAT DELHIDisallowance u/s 37 - CIT(A) deleted the addition - Held that:- Company is a private limited company registered under the Companies Act and is liable to statutory audit under Companies Act and tax audit u/s 44AB of the Income Tax Act, 1961. Unable to understand the proposition of AO of disallowances of all expenses excluding audit fees alleging that the company had not done any business and it had booked expenditure only to adjust share application money as share application money is not an item of income rather it is a liability which is shown in the balance sheet of the company and is not shown in Trading & P&L account. Therefore, logic of AO in disallowing whole of the expenses is not correct. CIT(A) rightly concluded that out of total expenditure of Rs. 22,69,989/-, Rs.13,16,265/- was on account of salary and wages and Rs.4 lakhs was on account of management consultancy on which TDS was deducted - disallowance of expenses by AO without recording the factual finding was not justified - no interference in the order of CIT(A) on this account required - against revenue. Unexplained cash credit - CIT(A) deleted the addition - Held that:- As on account of share application money received from EN Singapore through proper banking channel and money had traveled from Singapore account of EN Singapore. Considering the copy of Pay Order of Rs.20 lakhs & copy of confirmation of Singapore company regarding investment of Rs.25 lakhs in the assessee company nothing to interfere in the order of CIT(A)- against revenue..
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