TMI Blog2016 (1) TMI 710X X X X Extracts X X X X X X X X Extracts X X X X ..... imating the disallowance was not mentioned in the assessment order. Further, it is not disputed that such expenses are not at all incurred by the assessee. Incurring expenses in running the lorries such as sundry repairs and other recurring expenses are very common. Since the Assessing Officer has partially accepted the expenses incurred by the assessee and made disallowance, considering the nature of the business, we are of the firm view that the Assessing Officer was not justified in making disallowance on estimated basis in the present case. Accordingly, the disallowance made by the Assessing Officer is deleted. - Decided against revenue Disallowance towards advertisement and payment for festivals, etc. - Held that:- As in the absenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considering the submissions of the assessee and also considering the materials available on record, partly allowed the appeal of the assessee. Now, the assessee is in appeal before the Tribunal by raising various grounds. 3. The first ground raised in the appeal of the assessee is with regard to addition of ₹.9,80,850/- towards trade creditors. On verification of the balance sheet, the Assessing Officer has found that there is a liability of ₹.49,09,487/- shown under Mirasudar account representing the creditors for purchase of paddy. As per the details furnished by the assessee before the Assessing Officer, a sum of ₹.28,67,927/- is outstanding for more than a year and therefore, the assessee was asked to furnished conf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of the outstanding amounts. Out of 59 persons against whom the above amount is shown as outstanding, the assessee has filed confirmation letters from 35 creditors. However, the assessee could not file confirmation letters from 24 creditors. Since the outstanding liability to the extent of ₹.9,80,850/- was not proved by filing confirmation letters, the Assessing Officer disallowed the same. On appeal, even before the ld. CIT(A), the assessee could not file confirmation letters from 24 trade creditors. Therefore, the ld. CIT(A) confirmed the disallowance made by the Assessing Officer. On further appeal before the Tribunal, the assessee has not able to file confirmation letters from the 24 trade creditors. Since the trade lia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xpenditures claimed by the assessee are based on the payment slips given by the drivers except for the bills of diesel purchases, all other expenses claimed are through self made vouchers only. The Assessing Officer, keeping in view of the personal element of use of car as well as to keep a control on the expenses claimed, disallowed a sum of ₹. 2,00,000/-. 10. On appeal, the ld. CIT(A) confirmed the disallowance made by the Assessing Officer. 11. Before us, the ld. Counsel for the assessee has contended that the Assessing Officer has made the disallowance on estimated basis. Since the assessee has incurred heavy loss in his business, he prayed for deleting the disallowance made by the Assessing Officer. 12. On the other hand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present case. Accordingly, the disallowance of ₹.2,00,000/- made by the Assessing Officer is deleted. Thus, the ground raised by the assessee is allowed. 14. The last issue raised in the appeal of the assessee is with regard to disallowance of ₹.1,06,316/- towards advertisement and payment for festivals, etc. The Assessing Officer has observed that the assessee has claimed expenses which include expenses for conducting meeting and paid for festivals, etc. of ₹.5,31,578/- towards advertisement changes and sales promotion expenses and are not fully supported by bills and vouchers. Therefore, the Assessing Officer has disallowed 20% of the expenses. On appeal, the ld. CIT(A) confirmed the order of the Assessing Officer. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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