TMI Blog2014 (7) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... urred during the post survey period against regular business income which resulted in reduction of its regular business income for advance tax purpose to that extent - the AO and the CIT(A) misconceived the claim of the assessee for the expenses as that of against the additional income declared during the course of survey and made disallowance of the said expenses on the basis of this misconception without considering or examining the claim on merit being the claim for regular business expenses of post survey period against regular business income – thus, the matter is to be liable to be remitted back to the AO with a direction to consider and allow the claim of the assessee for the expenses as regular business expenses on merit – Decided i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me of Rs. Rs.21,80,818/- which included the additional income declared during the survey action. The claim of the assessee was that the said income was arrived at after accounting for all post survey expenses, which were not taken into account while estimating income for advance tax. In the assessment framed, the AO disallowed the expenses of Rs. Rs.19,19,182/- holding that the claim of the expenses was an after thought and further that the income during the survey was offered by the assessee after accounting all relevant expenses of the current year. On appeal, the Ld.CIT(A) confirmed the action of the AO. Aggrieved by the impugned decision, the assessee has preferred this appeal before us. 4. Having heard both the sides and perused the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f interest on unsecured loans for which provision of Rs.16,00,000/- was made by the assessee on estimated basis while computing profit for the purpose of advance tax on as 15.03.2007. A copy of Profit Loss Account of the assessee for the year under consideration is placed at page no. 72 of the paper-book which shows that the income of Rs.15,00,000/- surrendered by the assessee during the course of separately declared as income and the entire routine expenses including the expenses in question incurred during the post survey period were debited the profit and loss account. In our opinion, all these facts and figures appearing in the relevant financial statements clearly show that the amount expenses of Rs.8,17,7462/- were claimed by the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oned which is evident from the relevant portion of the said order of the Tribunal and the position is not disputed by the Ld.DR also. Therefore, following the aforementioned order of the Tribunal, we set aside the impugned order of the Ld.CIT(A) on this issue and restore the mater to the file of the AO with a similar direction given by the Tribunal in the case of Shrreshay Engg. Pvt. Ltd. and thereby allow the claim of the assessee for the impugned expenses as regular business expenses on merit after necessary verification. Accordingly, Ground no. 1 is allowed for statistical purpose. 5. Ground No. 2 of the revised grounds of appeal (Original Ground No.3) relating to disallowance u/s 14 A r.w. rule 8D has not been presses by the ld. AR o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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