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TMI Blog2015 (12) TMI 452X X X X Extracts X X X X X X X X Extracts X X X X ..... , the Learned DR argued on behalf of the revenue and Shri. M.S.Murthy, FCA, the Learned AR argued on behalf of the assessee. 3. The first issue to be decided in this appeal is that whether the disallowance u/s 40(a)(ia) of the Act amounting to Rs. 1,85,714/- towards repairs and maintenance could be made in the facts and circumstances of the case. 3.1. The brief facts of this issue is that the assessee claimed a deduction towards repairs and maintenance charges of Rs. 2,69,714/- paid to M/s A.B. Enterprises . The same was disallowed by the Learned AO u/s 40(a)(ia) for non-deduction of tax at source on the pretext that the same is debited under the head repairs and maintenance and accordingly it is liable for deduction of tax at source igno ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot inclined to interfere with the findings of the Learned CITA in this regard. Accordingly, the ground no. 1 raised by the revenue is dismissed. 4. The second issue to be decided in this appeal is that whether the disallowance u/s 40(a)(ia) of the Act amounting to Rs. 7,39,000/- towards printing charges could be made in the facts and circumstances of the case. 4.1. The brief facts of this issue is that the assessee claimed a deduction towards printing charges amounting to Rs. 14,53,092/- paid to M/s Calcutta Chromotype Pvt Ltd (Rs. 11,66,880/-) for purchase of business directory and to The Statesman (Rs. 2,86,212/-) for publishing various advertisements of clients. The same was disallowed by the Learned AO u/s 40(a)(ia) for non-deduction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e invoked on the same. Hence we are not inclined to interfere with the findings of the Learned CITA in this regard. Accordingly, the ground no. 2 raised by the revenue is dismissed. 5. The third issue to be decided in this appeal is whether in the facts and circumstances of the case, the addition u/s 68 of the act could be made in the sum of Rs. 41,03,182/- in respect of loans received by the assessee from various parties. 5.1. The brief facts of this issue is that the assessee was in receipt of following loans from the following parties :- Name of the party Amount of Loan (Rs.) Date of submission of confirmation M/s. M.S.Graphics Pvt Ltd 15,00,000/- 15-12-2009 Sri Biswanath Mukherjee 1,00,000/- 15.12.2009 M/s.Babcock Engineerin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eques. Accordingly the Learned CITA felt that the assessee had duly discharged his onus in terms of section 68 of the Act and deleted the addition. Aggrieved, the revenue is in appeal before us on the following ground:- "3. That the ld.CIT(A) erred in law as well as on facts in deleting the addition of Rs. 41,03,182/- made by the AO, under the head "Unexplained cash credit" simply relying on the Loan confirmation and a case law, CIT Vs. Lovely Export (P) Ltd 216 ITR 195(SC) without considering the facts that the contents of the said loan confirmation did not establish the impugned loan conclusively". 5.2. The Learned DR vehemently supported the order of the Learned AO. In response to this, the Learned AR argued that the assessee had full ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e by him. Hence we deem it fit and appropriate in the interest of justice and fair play, to set aside this issue to the file of the Learned AO and verify the veracity of the confirmations filed by the assessee from the five parties and decide this issue afresh uninfluenced by earlier decision after giving adequate opportunity of being heard to the assessee. The assesee is given liberty to adduce fresh evidences and documents to support his contentions. Accordingly, the ground no. 3 raised by the revenue is allowed for statistical purposes. 6. The last issue to be decided in this appeal is as to whether addition of Rs. 12,44,819/- could be made under the head 'Business Promotion Expenses' in the facts and circumstances of the case. 6.1. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r obtaining the remand report from the Learned AO in this regard. We also find from the remand report, no adverse remarks were made by the Learned AO with regard to the subject mentioned business promotion expenses. The revenue had not refuted the findings of the Learned CITA that the said expenditure were incurred wholly and exclusively only for the business purposes of the assessee. In view of these facts and circumstances, we hold that the order of the Learned CITA in this regard does not require any interference. Accordingly, the ground no. 4 raised by the revenue is dismissed.
7. In the result, the appeal of the revenue is partly allowed.
THIS ORDER IS PRONOUNCED IN OPEN COURT ON 12 / 10/2015 X X X X Extracts X X X X X X X X Extracts X X X X
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