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2017 (9) TMI 41 - ITAT DELHISundry creditors’ outstanding liability to be added to the income of assessee u/s 41(1) - issued notices u/s. 133(6) to sundry creditors - failed to give evidence regarding genuineness of creditors - Held that:- There is no question of remission or cessation of sundry creditors liability and the same is shown in the balance sheet of the assessee, then, facts and circumstances of the case would prove that the case of the assessee is not covered by the provisions of section 41 (i) of the IT Act. We, therefore, do not find any justification to interfere with the order of the learned CIT(A). We confirm his findings and dismiss this ground of appeal of the revenue - Decided against revenue Disallowance of business promotion and telephone expenses - Held that:- Authorities have made this disallowance without pointing out as to how much of such expenses were incurred by the assessee for personal benefit of assessee. Hence, the adhoc disallowance out of these expenses deserves to be deleted. Regarding car running expenses and electricity expenses, the AO has rightly made the disallowance, as the assessee could not be able to produce the log books of the vehicles run by him and that composite electricity expenses were found incurred on office cum residence of assessee. We accordingly confirm the disallowance made out of electricity and car running expenses as made by the authorities below.
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