TMI Blog2015 (10) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... e cheques - Held that:- AO has made adhoc disallowance of ₹ 1 lakh on the reasoning that the assessee could not furnish details to show that the gift articles purchased by him were actually distributed to its customers. The AO has also pointed out that the assessee has not maintain any register/record to substantiate the claim of distribution. We notice that the ld CIT(A) has not addressed this issue. However, distribution of gift articles to the local retailers are prevailing trade practice. Under these circumstances, we are of the view that this may ends of justice if the disallowance is restricted to 50,000/-. Accordingly, we modify the order of ld. CIT(A) and direct the AO to restrict disallowance to ₹ 50,000/-. - Decided pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the AO made adhoc disallowance of ₹ 1 lakh out of the above said expenditure. The AO further noticed that the assessee has debited ₹ 1 lakh to his capital account towards marriage expenses of his daughter. The AO asked the assessee to furnish details of the marriage expenses with documentary evidence in its support. The assessee submitted that the marriage ceremony in Ulhasnagar and it was simple marriage ceremony. Further, the expenditure which incurred by the assessee as well as the bridegroom side. The assessee did not furnish any other details. Hence, the AO estimated marriage expenses at ₹ 20 lakhs and added the same to the total income of the assessee u/s 69C of the Act. In the appellate proceedings, the ld. CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ld. CIT(A) that marriage of the assessee s daughter took place at Gurudwara and against the wishes of the family. Since it was out of said marriage. Further the assessee submitted that the provisions of sections 69C can be made applicable if and only if the AO is in a possession of the proof that the expenditure was incurred by the assessee. Accordingly, it was contended by the assessee that the addition cannot be made on pure guess work basis. 6. We notice that the ld. CIT(A) has considered the submissions of the assessee and deleted the addition with the following observations : 9. I have gone through the assessment order of the AO and have also the written submissions made by the appellant carefully. I agree with the above c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny action to find out whether the expenditure was directly incurred or not 11. The above ratio of judgement is applicable to the facts of the instant case. The AO has not placed any evidence on record to prove that the appellant has incurred an expenditure on his daughter s marriage over and above the expenses of ₹ 1.00,000/- withdrawn from his personal capital account. The AO has not carried out any independent investigations to prove his point of unexplained expenditure. In the absence of any evidence placed on record regarding the incurring of expenses apart from the expenses shown as withdrawal from the personal capital account for daughter s marriage, the action of the AO is not justified in estimating the marriage expenses o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h is based only on estimation and no other collected evidences, much less the statement of the persons who alleged to have performed the various functions for the celebration of the marriage by the assessee of his daughter. Whereas, the assessee has given the detailed accounts furnishing the particulars of those expenditures and disclosing the sources for meeting those expenses by giving detailed information but this was rejected by the AO without assigning any reason such as, either they are not genuine or they are not properly supported by cogent evidence or vouchers. The CIT(A) has found that the AO has not made out any of the ingredients as required under law to justify the addition made under s. 69C against the assessee. The order pass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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