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2018 (12) TMI 1053 - AT - Income TaxAddition u/s 69C - difference in outstanding balance shown in the books of the assessee as well as Starflex Sealing India Pvt. Ltd - Held that:- Though the assessee has made submissions before the Assessing Officer reconciling the difference, it has not be properly considered. The learned Commissioner (Appeals) has also sustained the addition in an unreasoned and mechanical manner since the assessee did not appear to represent its case. However, the issue is whether the addition can be made under section 69C of the Act. This aspect requires to be considered along with assessee’s claim that even if there is a difference it has to be allowed as bad debt. Since the aforesaid aspect has not been considered by the Departmental Authorities, restore the issue to the file of the Assessing Officer for denovo adjudication Addition of bogus purchases - AO has made the addition primarily for the reason that the notices issued under section 133(6) could not be served on the concerned parties - Held that:- Of–course, AO has also observed that the assessee failed to produce the concerned parties before him. However, it appears from the record that the assessee has furnished quantitative tally of the goods purchased it is also a fact that the Assessing Officer has not disturbed or doubted the sales affected by the assessee. In these circumstances, the entire purchases cannot be disallowed and treated as income of the assessee. Therefore, we direct the Assessing Officer to restrict the addition to 12.5% of the bogus purchases. Ad–hoc disallowance out of general expenses - Held that:- Assessing Officer has not pointed out which of the expenditures are not supported by bills and vouchers. In case, the assessee was unable to produce bills and vouchers in respect of specific expenditure, the Assessing Officer should have restricted the disallowance to such expenditure. Without doing so, the Assessing Officer cannot make any ad–hoc disallowance by simply observing that the assessee was unable to produce receipts bills to substantiate the expenses claimed. Accordingly, delete the disallowance Disallowance of set–off of brought forward of business loss - Rectification application filled - Held that:- here is no discussion either by the Assessing Officer or by the learned Commissioner (Appeals) with regard to the aforesaid claim of the assessee. Notably, though the assessee has filed an application for rectification under section 154 of the Act on 29th March 2013, however, it is still pending before the Assessing Officer. In view of the aforesaid, we direct the Assessing Officer to examine assessee’s claim and dispose off the application filed under section 154 - Assessee’s appeal is partly allowed.
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