TMI Blog2009 (4) TMI 472X X X X Extracts X X X X X X X X Extracts X X X X ..... ORDER-B.R. JAIN, A.M.: This appeal by the assessee against the order dt. 13th Nov., 2007 of the learned CIT(A), Jodhpur raises the effective grounds as under: "1. That the AO was not justified on facts and in law in making various additions/disallowances. The learned CIT(A) is not justified on facts and in law in confirming the same. 2(i). The learned CIT(A) is not justified on facts and in law in confirming the disallowance of Rs. 2,00,000 as made by the AO out of wages and job charges. (ii) That the disallowance is without any basis and justification and therefore not justified on facts and in law. 3(i). The learned CIT(A) is not justified on facts and in law in confirming the addition of Rs. 5 lakhs as made by the AO on a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cked by the AO. During the course of assessment proceedings, the AO observed that the assessee has paid job work charges of Rs. 3,55,540 as against the job work receipts of Rs. 10,39,894. The expenses claimed were considered excessive when compared to the expenses incurred in immediately preceding year. Accordingly, not accepting the claim fully, he made ad hoc disallowance of Rs. 2 lakhs. The learned CIT(A) confirmed the disallowance. 3. We have heard the parties and have carefully perused the material on record. In the immediately preceding year, the assessee had been doing the business of Kimam whereas during the year under consideration, the assessee changed its product to scented supari also. This change has led to the higher cost in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ine. The AO, without bringing any adverse material on record, proceeded to disbelieve the correctness of the facts and wrongfully made the addition as income from undisclosed sources. Under such peculiar facts, and respectfully following the judgment by the Hon'ble Rajasthan High Court in CIT vs. Heeralal Chaganlal Tank (2002) 176 CTR (Raj) 495 the addition being unwarranted and unjustified, is directed to be deleted. 7. Next ground in appeal relates to the addition under s. 69 of Rs. 1,32,000 as an alleged payment of stamp duty. 8. Briefly stated the facts of the case are that the assessee had disclosed an advance of Rs. 2 lakhs in the balance sheet annexed with the return of income. It was claimed that the aforesaid stamp duty of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led out and the expenses are not fully vouched, made a lump sum disallowance of Rs. 1 lakh. The learned CIT(A) considering the entire facts of the case observing that disallowance of Rs. 1 lakh so made by the AO was not excessive and unreasonable under any circumstances, upheld the disallowance. 12. We have heard the parties and have carefully perused the material on record. We find that the AO himself noted in the assessment order that the expenses have been incurred for the purposes of business of the assessee. The accounts of the assessee were duly audited under s. 44AB of the Act and in view of the fact that the auditors had even certified to the effect that no personal expenses have been debited to the firm's P L a/c, we hold that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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