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2015 (10) TMI 1628 - ITAT DELHI

2015 (10) TMI 1628 - ITAT DELHI - TMI - Addition of 30% of sundry creditors - CIT(A) deleted the addition - Held that:- Disallowance of 30% of sundry creditors on ad hoc basis is arbitrary. We do not understand how such addition can be made by the AO. The factual findings of the ld. CIT(A) could not be controverted by the ld. DR. - Decided in favour of assessee.

Ad hoc disallowance of 30% of expenses on estimate basis - CIT(A) deleted the addition - Held that:- The records show that t .....

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fects 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:- 19-6-2015 - Diva Singh, JM And J. S. Reddy, AM,JJ. For the Appellant : Ms Y Kakkar .....

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he matter in appeal. The first appellate authority granted part relief. 4. Aggrieved the Revenue is in appeal on the following grounds; 5. We have heard Ms. Y. Kakkar, the DR on behalf of the Revenue and Shri K. G. Sharma, the ld. counsel on behalf of the assessee. 6. On careful consideration of the facts and circumstances of the case, a perusal of the paper on record and orders of the authorities below as well as case law cited we hold as follows; 7. Ground No. 1 is on the issue of admission of .....

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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 N .....

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amily members which suffered financial crunchy and in order to remain in the business the Directors raised secured loans and also unsecured loans from various bank. "In view of the above, it is submitted that the notices issued by the AO were not received by the appellant, which has resulted in the ex-parte assessment order u/s 144 framed by the AO coming to the additional evidence, it is pointed out by the ld. AR that the said evidences could not be produced during the assessment proceedin .....

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the additional evidences are admitted under Rule 46A in the interest of natural justice." 10. We find that no infirmity in this decision 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 .....

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