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2013 (9) TMI 873 - ALLAHABAD HIGH COURTAllowance of expenses – Held that:- AO has wrongly recorded the fact that on the date of hearing dated 27.12.2010 the assessee/Authorised Representative did not appear before the A.O whereas the fact is that the assessee/Authorised Representative appeared before the A.O and the A.O himself recorded statement of some parties which are filed in the paper book. The A.O has recorded blind in correct fact which is not appreciable. Merely mentioning that the case is going to be barred by limitation on 31.12.2010 the A.O has taken shelter and on the basis of incorrect fact made the assessment under Section 144 of the Act. Such a practice is not in accordance with law, therefore, such action of the AO is not sustainable – As regards claim of expenditure and addition to the extent of Rs.5,00,000/-, it has been sustained for want of verification of expenditure and others – It has been rightly allowed relief of Rs.45,46,166/- as sustaining 50% of expenses and running a business with remaining 50% expenses is impossible. Addition on account of creditors – Held that:- AO has accepted the document filed by the assessee containing copy of bank statement and confirmation and the AO did not doubt about the genuineness of those parties. The AO himself recorded the fact in the remand report that he has also accepted the statement of almost all the creditors recorded on 27.12.2010 except creditor for the amount of Rs.40,998/- - When the AO himself accepted the genuinness of the creditors, there is no error in the order of CIT (A) in deleting the addition of Rs.1,25,69,815/- Books of account were produced and were relied upon to allow the expenses – Decided against the Revenue.
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