TMI Blog2012 (7) TMI 278X X X X Extracts X X X X X X X X Extracts X X X X ..... s not maintainable - partly in favour of assessee. Disallowance on account of unvouched expenses - Held that:- adhoc disallowance was made on the ground that expenses are not fully vouched whereas not even a single instance of unvouched expense has not been mentioned in the assessment order - considering that the expenses are fully vouched as the AO has not mentioned even a single missing voucher no addiotns is warranted - in favour of assessee. - I.T.A No. 4939/Del/11 - - - Dated:- 29-6-2012 - SHRI I.P. BANSAL, AND SHRI K.G. BANSAL, JJ. Appellant by: Shri Pradeep Kumar Meel, Sr. DR Respondent by: Shri Sandeep Sapra O.P. Sapra, Advocate ORDER PER K.G. BANSAL, AM: The revenue has taken up two grounds in this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to the AO for her comments. In order to verify the submissions of the assessee, she issued letters and summons to various parties. Such notices were served on all creditors except Shri Pramod Kumar Aggarwal and Shri Shanti Swaroop. In the remand report dated 21.7.2011, she accepted the liabilities in respect of five creditors to be genuine. These are Smt. Manjula Sharma, Shri Sanjay Gupta, Shri R.S. Sharma, HUF, Shri R.K. Sharma, HUF and Shri C.K. Sharma HUF. These liabilities aggregated to Rs.9,49,217/-. However, she was not fully convinced about the liability in respect of M/s. D.K. Book Binding Works, Shri B.K. Sharma and Shri Ankur Sharma. It was stated that the issue may be decided on merit in respect of these persons. In respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... furnished. The accounts filed by the assessee showed that there was opening credit balance. The AO had added the whole amount without considering such opening balances. It has been held that there is no finding to the effect that the royalty credited in their accounts was either bogus or it ceased to exist in this year. Therefore, addition of these liabilities was also deleted. 3. Before us, the Ld. Counsel drew our attention to the accounts of M/s. D K. Book Binding. Shri B.K. Sharma, Ankur Sharma, Gurdeep Raj, Madhu Chatwal and P K. Aggarwal placed in the paper book. His case is that these are running accounts in which liabilities are incurred from year to year. Therefore, there is no reason to disallow the liability or to add the ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,19,049/-. The amount is similar to the account of Shri D.K. Sharma. The amount paid is more than the liability incurred. Thus, it is held there is no justification for adding the closing balance to the income of the assessee. (iv) The account of Shri Gurdeep Raj shows opening balance of Rs.3,28,636/-. There have been further addition on account of receipts of Rs.1,76,574/- on 1.4.2006, which are stated to be on account of reversal of entries because cheques issued last year to this person were not encashed. Two amounts of Rs.50,000/- were paid, the entries in respect of which seems to have been reversed. But a sum of Rs.1 lacs has been paid. Royalty of Rs.1,24,475/- has been credited in this year. The balance in the account shall Rs.5,29 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore, it is held that the AO could disallow the claim of expenditure of Rs.1,24,475/- for which liability is stated to have been incurred in this year and nothing. It is held accordingly. (vi) in the case of Shri P.K. Aggarwal, the account shows opening balance of Rs.1,23,654/-. A sum of Rs.7,274/- has been credited as royalty. Thus the balance of Rs.1,30,928/- has been carried forward to the next year. It is further seen that a sum Rs.63,846/- has been paid in Financial Year 2007-08, Rs.30,000/- in Financial Year 2008-09 leaving a balance of Rs.71,584/-. Thereafter no payment has been made. This is also a running account in which payments have been made to the creditors. Therefore, the AO was not right in adding the closing balance ..... X X X X Extracts X X X X X X X X Extracts X X X X
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