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2017 (8) TMI 24 - ITAT DELHIAddition on account of purchases made from Suresh HYP Enterprises - 133(6) enquiry letter sent to that party came back un served because of incorrect address - Held that:- As during the course of assessment proceedings, the AO has verified the books of accounts, bills, vouchers, master rolls, bed sheet and logbooks and on such verification, no defect in the books of the assessee was pointed out. The Assessing Officer made the whole addition by pointing out certain lacunas in the bank account of the suppliers of the assessee, which cannot be permitted. Merely because 133(6) notices issued to the party returned un-served though it was the same address, which was supplied by supplier while filing its income tax return, no fault can be put on the shoulder of assessee. Further, the ld CIT(A) confirmed the finding of the ld Assessing Officer without giving any reason but merely reiterating the findings of the Assessing Officer. In view of this the addition made by the ld Assessing Officer of ₹ 2657303/- from Suresh HYP Enterprises cannot be sustained and hence, deleted. In the result ground of the appeal of the assessee is allowed. Disallowance u/s 14A - Held that:- As submitted that the assessee has not earned any exempt income during the year. The fact is also verifiable from page no. 2 and 3 of the computation of total income wherein the ld DR could not point out any exempt income. From the profit and loss account of the assessee also it is evident that assessee has not claimed any income under exemption. In view of the decision of the Hon'ble Delhi High Court in Cheminvest Ltd Vs. Cit [2015 (9) TMI 238 - DELHI HIGH COURT] wherein, it has been held that no disallowance can be made where no exemption is claimed. Therefore, in view of the above decision we direct AO to delete the disallowance u/s 14A of the Act. - Decided in favour of assessee. Disallowance of expenses as non-business purposes - Held that:- Any expenditure which is not supported by proper bills and vouchers or if it is shown that such expenditure has not been incurred wholly and exclusively for the purposes of the business then definitely such expenditure is not allowable u/s 37(1) but for making disallowance of any expenditure it is for the revenue to show that such expenditure is personal in nature or incurred for any other object. In absence of any such finding the ad hoc disallowance made specifying certain percentage to which the assessee has not agreed at all is not sustainable. No instances noted by AO about any of the expenditure, which are not incurred for the purpose of business. Merely because telephone call register is not maintained or vehicle logbook is not available, expenses cannot be disallowed on ad hoc basis when the telephone is installed and used for the purpose of business and vehicles are also owned and used by the assessee for the purpose of business. The disallowance made are deleted - Decided in favour of assessee
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