TMI Blog2015 (10) TMI 1628X X X X Extracts X X X X X X X X Extracts X X X X ..... nies on vehicles and stock, advertisement, legal and professional charges and telephone charges etc. The ld. AR has submitted that TDS has been deducted wherever required under the law, the details of which were produced before the AO except for interest paid Cholamandalam DBS. The AO has not pointed out any specific defects in the books of account, except making some flimsy comments in the remand report, despite the fact that the ld. CIT(A)-VI had remanded the matter to the AO for examination as many as three times. In view of the above, disallowance to the extent paid to Cholamandalam DBS without TDS is confirmed. The balance addition of ₹ 5,60,156/- is deleted - Decided against revenue. - ITA No. 5688/Del/2012 - - - Dated:- 19-6-2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idered the assessment order, remand reports of the AO and submissions made by the ld. AR alongwith the documents placed on record. As submitted by the ld. Ar, the appellant company is a closely held company and two Directors, namely Mr. and Mrs. Prakash V. Batra hold 99.9% of the shares of the company. The appellant company and its Directors underwent financial strife and a spate of litigations filed by creditors etc. during the period under consideration as a result of which the company was on the verge of closure. This fact is also mentioned by the ld. CIT(A)-VI, New Delhi in her order dated 28.05.2010 in Appeal No. 47/09-10 in the case of Shri Prakash V. Batra as follows: During the proceedings before me, it was submitted that the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion of the first appellate authority, thus ground no. 1 is dismissed. 11. Ground No. 2 is against the deletion of addition of 30% of sundry creditors. The ld. CIT(A) dealt with issue at Para 4.10 of his order. He held that the AO has conducted inquiries and verified the claim of the assessee during the remand proceedings. Confirmations were received by the AO from the parties the AO has not brought out any adverse material in the remand report except to say that vouchers were not produced and certain payments to M/s Knight Queen Marketing Pvt. Ltd. was made in cash of less than ₹ 20,000/- each. 12. In our view disallowance of 30% of sundry creditors on ad hoc basis is arbitrary. We do not understand how such addition can be mad ..... X X X X Extracts X X X X X X X X Extracts X X X X
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