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TMI Blog2013 (7) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... djudication. Surviving grounds No.1 to 4 are reproduced herein under for reference:- "1. On the facts and circumstance of the case and in law, the Ld. CIT(A) has erred in deleting the addition of Rs.20,90,908/- made on account of disallowance of non-genuine brokerage expenses without appreciating the fact that the substantive amount of commission was paid in the month of March without any supporting bill NO. of the corresponding sale. 2. On the facts and circumstance of the case and in law, the Ld. CIT(A) has erred in deleting the addition of Rs.13,00,000/- made u/s 68 and disallowance of interest expenses on that of Rs.52,142/- without appreciating the fact that the assessee failed to prove the identity and genuineness of the transaction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Rs.13,00,000/- u/s 68 of the Act on account of unexplained cash credit, (iii) disallowance of Rs.52,142/- on account of interest expenses, (iv) addition of Rs.37,35,148/- on account of suppressed sale and (v) addition of Rs.3,78,690/- u/s 69B on account of stock difference were made. On appeal, the learned CIT(A) allowed the appeal of the assessee by deleting all the additions/disallowances made by the learned AO against which the revenue has preferred this appeal before us. 5. Ground No.1 Deleting the addition of Rs.20,90,908/- made on account of disallowance of non-genuine brokerage expenses:- The learned AO observed that the assessee had debited Rs.21,46,305/- in the name of agents as commission. On further perusing the issue the foll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... comparison to other months of year are high. All the relevant details, supported with documentary evidences have been filed by appellant before AO but not a single significant defect has been detected by AO. The details of sales made by agents, method of payments through account payee cheques in majority of the cases, TDS made on the payments and all other required details have been filed by appellant during assessment proceedings as well as appellate proceedings which justify the claim of appellant that the commission expenses are genuine and incurred for the business purposes. In such situation, there is no justification in disallowance made by AO, therefore, I delete the addition of Rs.20,90,908/- and allow the ground of appeal." 7. We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce to serve notice in particular time. (d) Due to non providing of perfect address it is also not possible to issue summons to verify genuineness of lender. (e) Copy of return alone did not serve any purpose in absence of computation, copy of capital, profit and loss account and balance sheet. 9. The learned CIT(A) rendered relief to the assessee by observing that the learned AO had given superficial reasons to treat the loan as unexplained which we find is not tenable. The learned AO had categorically mentioned that the assessee had not provided the correct address of the lenders to issue notice for summons. Therefore, in the interest of justice we remit this issue also to the file of the learned CIT(A) for de novo consideration. This g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce. If the assessee really wanted to prove, he could have submitted table shown bill wise shortage to prove his point. However, the same was not provided. 11. The learned CIT(A) deleted the addition made by the learned AO by observing in Para 4.3 of his order as under:- "4.3 I have considered the facts of the case and found that as earlier two additions, this addition is also made by AO on very weak grounds. The basis given by AO for making disallowance that shortage of goods on account of job workers is not an acceptance theory, higher shortage leads to higher sale price of finished goods and only sample bills were produced by appellant, are again superficial and flimsy grounds. As per chart given in the submissions, appellant has shown ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e addition and allow the ground of appeal." 12. After perusing the order of the learned CIT(A) on this issue, we are in conformity with his findings. It is pertinent to note that the books of account maintained by the assessee have not been rejected. No defect has also been pointed out by the learned AO with respect to the books of account. No discrepancies with regard to shortage affecting the yield were also pointed out by the learned AO. In these circumstances, addition made by the learned AO based on 2% shortage cannot be sustained. Therefore, we uphold the decision of the learned CIT(A) on this issue. This ground raised by the revenue is accordingly dismissed. 13. Ground No.4 Deleting the addition of Rs.3,78,690/- made u/s 69B for st ..... X X X X Extracts X X X X X X X X Extracts X X X X
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