9911796707
TMI Blog2015 (10) TMI 1486X X X X Extracts X X X X X X X X Extracts X X X X ..... ss of Rs. 7,82,380. During the course of assessment proceedings many notices were issued by the A.O. but there was no compliance from assessee. In view of non-compliance to the notice, a show cause letter dated 04.12.2010 was issued to the assessee why the assessment should not be completed under section 144 of the I.T. Act proposing details of the sundry creditors to an extent of Rs. 81,15,738 and also disallowance of 25% of the expenditure debited to P & L account under two heads. In response to the show cause notice, the Managing Director appeared but since there was no business activities in the company, due to problems in real estate business sought time for production of books. The case was again adjourned to 16.12.2010 and assessee s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advance for payment to the vendors of the land. 4. The learned CIT(A) erred in confirming the action of the A.O. in disallowing 25% of the expenses under the head "Workmen and staff welfare of Rs. 30,30,671/-, out of which Rs. 16 lakhs represents the remuneration paid to directors of the assessee company. 5. The Ld. CIT(A) erred in confirming the action of the A.O. in disallowing 25% of the expenditure of Rs. 37,74,218/- under various heads on adhoc basis without appreciating the fact that the expenditure is genuine and was wholly laid out for the purpose of business of the appellant. 6. The Ld. CIT(A) erred in confirming the action of the A.O. in not allowing unabsorbed depreciation of Rs. 1,14,789/-. 7. Any other ground that may be ur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, in our view, the additions could not be made without analyzing the business activity of assessee. A.O. can enquire expenditure claims made in the P & L account. However, the outstanding sundry creditors or liabilities are not from the P & L account but are Balance Sheet amounts. The outstanding amount cannot become income, unless it is established that the credits were received during the year and further they are unexplained. Nothing was brought on record by the A.O. and only the outstanding amount was brought to tax without examining the nature of the amounts. Moreover, when assessee sought to file additional evidence, in our view, Ld. CIT(A) rejected admission of the same without any valid reason. Assessee is justifying that Managing ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
