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2016 (5) TMI 349 - AT - Income TaxAddition made on account of discrepancy in DVAT account - Held that:- The reconciliation statement, ledgers of the parties in the books of accounts of the assessee. It is ample clear that the purchases shown by the assessee in the purchase returns are the same that of the sales shown by the assessee in the sales returns in regard to these three parties in the books of accounts of the assessee. The CIT(A) after considering the reconciliation statement, copies of the ledger accounts of the alleged party rightly and correctly held that there were no inflated purchases shown by the assessee in its Profit & Loss Account and there were no access purchases were claimed by the assessee in its P & L Account. In view of above, we are inclined to agree with the conclusion of the CIT(A) all that there were no inflated purchases claimed by the assessee in its Profit & Loss Account. Therefore, addition made by the AO on the allegation of inflated purchases cannot be held as sustainable and the same was rightly deleted by the CIT(A) - Decided in favour of assessee Addition made on account of discrepancies in sales and purchases - Held that:- Neither the AO nor the Ld. DR has brought on record any allegation to establish that the sales were made by the assessee during the FY 2008-09 relevant to AY 2009-10 amounting to ₹ 1,12,99,491/- from M/s. A.P.Sons and of ₹ 2,39,166/- from M/s. South Delhi Saree House and thus, we are in agreement with the conclusion of the CIT(A) wherein he held that there were no unaccounted sales of the assessee to its alleged dedicated dealers i.e. M/s A.P. Sons and M/s. South Delhi Saree House and hence we uphold the findings of the CIT(A) on this count. - Decided in favour of assessee Disallowance of expenses - Held that:- The assessing officer made additions without any reasonable cause for both the assessment years and the CIT(A), after considering and properly appreciating the facts, circumstances and explanation of the assessee to the rightly held that the expense was incurred wholly and exclusively for the purpose of the business of the assessee and the same was allowable expenses expenditure for the assessee under the provisions of the Act - Decided in favour of assessee
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