TMI Blog2012 (3) TMI 443X X X X Extracts X X X X X X X X Extracts X X X X ..... d facts of the case in partly sustaining the addition of ₹ 19,90,000/- in the hands of the assessee. 3. That the CIT(A) while sustaining the disallowance of an amount of ₹ 19,90,000/- acted most arbitrarily and rather erred in failing to appreciate that in absence of any adverse remark or infirmity pointed out by the AO in his remand report as regards he same, no adverse inference was liable to e drawn in the hands of the assessee firm. 4. That the CIT(A) has erred in sustaining the disallowance of ₹ 25,014/- in the hands of the assessee firm. 5. That the CIT(A) has erred in sustaining the disallowance of ₹ 5,000/- in the hands of the assessee firm on the basis of alleged non-production of vouchers. 6. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hose dealers to whom these expenses were paid. In response, the appellant produced Cash Book, ledger and Distribution expenses book but not produced purchase/sales bills etc. Thereafter, the appellant asked to produce the books of account. The AO test checked books of the appellant and found certain discrepancies in respect of purchases sales shown in the books of account as the same were not tallied with the return of income filed. Audit Report was also examined by the A.O. and revealed that purchases amounting to ₹ 05,40,593/- and sales at ₹ 2,23,22,462/- had been reflected against the purchase of ₹ 8,85,60,101/- and ₹ 8,96,32,772/- respectively as shown in the Therefore, the AO rejected appellant s books of acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d circumstances of the case and also perused the relevant assessment order under appeal as well as remand report submitted by the A.O. in this regard. Vide his report, the AO submitted that expenses amounting to ₹ 75,68,134/- is appear to be genuine as the same was reimbursed by the concerned company i.e. Vodafone Essar South Limited, C-131, Industrial Area, Phase VIII, Mohali, Punjab. The relevant paragraph of the AO s report is as under: :From the perusal of information received from Vodafone Essar South Limited, C-131, Industrial Area, Phase VIII, Mohali, Punjab u/s 133(6) of the Act, it revealed that the claim on account of service tax amounting to ₹ 8,33,487/- and FRC and salaries amounting to ₹ 67,34,647/- totali ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the disallowance to the extent of 60% and balance 40% is directed to be deleted. 7. The Ld. CIT(A) as mentioned hereinabove, restricted the disallowance to the extent of 60% and balance of the 40% was directed to be deleted. 8. The Ld. counsel for the assessee, Sh. Ravish Sood, Adv. argued that in the remand proceedings, the assessee produced all the 11 files which were required to be verified by the A.O. but the A.O. could not verify the same looking to the voluminous nature of entries. The Ld. counsel for the assessee, produced all the 11 files of the accounts which were required by the A.O. during remand proceedings, before the Bench also, which has voluminous nature of entries. It was argued that if the said record is not verif ..... X X X X Extracts X X X X X X X X Extracts X X X X
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