TMI Blog2012 (2) TMI 195X X X X Extracts X X X X X X X X Extracts X X X X ..... n filed with paper book. CIT(A) rightly deleted additions. Undisclosed Income - "Donations" shown as gifts - Held That:- Assessee has filed copies of statement of donations with relevant receipts issued by the donees - personal bank account with HSBC Bank reflecting donations made - and balance sheet with Income & Expenditure account and Receipts & Payment Accounts etc. Donation made by A/C payee cheque same are duly reflected in the assessee’s individual accounts. Decided in favour of assessee. - ITA No. 327 (Kol) of 2010 - - - Dated:- 6-1-2012 - Shri Mahavir Singh, Sri C.D. Rao, JJ. For the Appellant: Sri D.J. Mehta For the Respondent: Sri Soumitra Choudhury ORDER C.D. Rao, Accountant Member : This app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oyees Rs.9,50,733/- as part of the salaries by way of reimbursement of their travelling conveyance expenditure incurred for the sake of the assessee s business and hence there was no element of personal expenses by the assessee himself, who met his personal expenses from his self drawings. The ld. C.I.T.(A) found the explanation of the assessee to be satisfactory and thus deleted the addition made on this account. 3.3. We have heard the parties and perused the material placed on record. The ld. A.O. disallowed 20% of the expenditure presuming personal expenditure by the assessee, whereas the assessee claims that the entire expenditure was incurred by his employees which were reimbursed to them along with the salary. On these facts, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onnection with the export business for attending international leather trade fairs and also attending buyers and sellers meeting abroad as well as explore new markets. It was further submitted that the department in the immediately preceding two assessment years the disallowance was restricted to 20% only for want of supporting vouchers etc. Therefore, the ld. A.O. was not justified to enhance the disallowance to 25% instead of 20% made in earlier years. The ld. C.I.T.(A) on the above facts held that as the assessee was not able to produce bills/vouchers for all the expenses during his foreign trips, some disallowance is warranted. He, therefore, restricted the disallowance to 20% instead of 25% made by the ld. A.O. 4.3. After hearing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter to M/s. SES Enterprises, which was returned unserved by the postal authorities. He, therefore, held that the assessee has shown bogus purchase against the said party and the same was added to the assessee s total income. 5.2. During the course of appellate proceedings before the ld. C.I.T.(A), the assessee produced some documents in support of the purchases made from M/s. SES Enterprises. The ld. C.I.T.(A) called for a remand report and the ld. A.O. reported that the Inspector of the department found the office of that party under lock key and it has been reported by the caretaker that the said concern has been closed since 2006. The ld. C.I.T.(A) after perusing the evidences and considering the submissions of the assessee found the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The ld. Departmental Representative could not controvert the above factual position supported by evidences. In this view of the matter, we are of the opinion that the ld. C.I.T.(A) has rightly deleted the addition of Rs.31,332/- made by the A.O. alleging bogus purchase from M/s. SES Enterprise and needs no interference at our end. This ground of the department is, therefore, dismissed. 6. The last ground of the department is as under :- 4) The Ld. CIT(A)-XIV, Kolkata has erred on the facts and in circumstances of the case by deleting the addition of Rs.21,00,000/- as during the assessment proceedings the assessee was provided ample opportunities to provide documentary evidence of the source of funds which he failed to do and hence th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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