TMI Blog2015 (11) TMI 267X X X X Extracts X X X X X X X X Extracts X X X X ..... e is cancelled. Claim of expenses which was accepted without any evidence or verification - Held that:- Complete details of the expenses over ₹ 1 lakh were asked by the Assessing Officer and the same were submitted by the assessee vide reply dated 25.10.2010 and copies of accounts of various heads of expenses were submitted and the supporting vouchers and bills, receipts etc. were also summoned and produced by the assessee on 25.10.2010 and on 28.10.2010. The accounts of the assessee were audited by the Chartered Accountant. We find that the order of learned CIT u/s 263 on this issue is based on mere suspicion and there is no material brought on record to suggest that the order of the Assessing Officer was erroneous or prejudicial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccordingly, notice under section 263 of the Incometax Act, 1961 was issued pointing out as follows:- a) Trade Creditors of ₹ 1,37,01,797/- and share application money of ₹ 52,48,000/- has been accepted by the A.O. without any enquiry or verification. b) There is difference in the receipt shown by the assessee in TDS certificate which is at ₹ 2,12,03,930/- and 26AS which is ₹ 2,22,87,066/- which means that there is a suppression of ₹ 10,83,136/-, which was required to be added to the income of the assessee, but A.O.s order is silent on this issue. c) Claims of expenses have been accepted as such without any evidence or verification. 4. With regard to the first issue of trade creditors of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hs for which necessary evidence was filed. He referred to the relevant details filed in the compilation in this behalf. 5. Learned DR has opposed the submissions of the learned counsel for the assessee on this issue. He submitted that not only enquiry but proper enquiry should have been made by the Assessing Officer, which was not done in this case. The Assessing Officer has failed to do any enquiry with regard to the source and merely taking papers on record is not sufficient. He relied on the decision of Hon'ble Delhi High Court in Gee Vee Enterprises Vs. Additional CIT, Delhi I, and Others - [1975] 99 ITR 375 and of Hon'ble Supreme Court in Roshan Di Hatti Vs. CIT, Delhi - [1977] 107 ITR 938 in support of the case of the Rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In these facts of the case, we hold that the learned CIT was not justified in invoking the provisions of Section 263 of the Act on the issue of trade creditors and share application money and the same is cancelled. 7. The second issue is with regard to the difference in the receipt shown by the assessee in TDS certificate and as per form 26AS. The learned counsel for the assessee has not pressed this issue as the Assessing Officer himself in order passed u/s 143(3) giving effect to the order of the CIT u/s 263 had accepted the version of the assessee and had not made any addition on this account. Accordingly, this issue does not require any adjudication. 8. The third issue raised by the learned CIT u/s 263 was the claim of expenses wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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