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TMI Blog2014 (9) TMI 1024X X X X Extracts X X X X X X X X Extracts X X X X ..... e of Rs. 580387/- on account of purchases, freight, power, fuel, salary & wages and other expenses. The Ld. CIT(Appeals) has erred in sustaining the same. No specific reason or instance was pointed out. As such there was no reason and justification for sustaining this addition especially when all the expenses are fully vouched and they were incurred during the course of business. As such, the addition sustained by the Ld. CIT(A) is unjustified and the same may be deleted. Alternatively, the disallowance made by AO is very high & excessive. 3. That the Ld. CIT(A) has erred in confirming the addition of Rs. 2,50,000/- and Rs. 3,32,580/- made by the AO on account of so-called bogus creditors and unexplained loans. There was no reason for sus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n nature and therefore, did not require any adjudication. 3. As regards grounds no. 2 & 3, the brief facts of the case are that the assessee had claimed following expenses in the profit & loss account: S.No. Particulars Amount (Rs.) 1. Purchases 4542550 2. Freight 656904 3. Power & Fuel 23698 4. Salaries & Wages 525190 5. Other expenses 55543 The AO disallowed 15% of the said expenses in the absence of books of account and vouchers vide para 3.1.2 of the order and also made similar addition on account of sundry creditors amounting to Rs. 3,32,580/- and Rs. 4.90 lakhs on account of unsecured loans in the absence of any explanation to the satisfaction of the A.O. 4. The Ld. CIT(A) deleted the addition of Rs. 2.40 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. As regards ground No.4, the brief facts are that the assessee claimed deduction u/s 80-IB of the Act amounting to Rs. 20,18,705/-. The Ld. CIT(A) disallowed the same by observing that the assessee is not qualified for deduction vide para 4.5 of his order. 8.1. The Ld. CIT(A) confirmed the action of the A.O. and considering the arguments of the ld. counsel for the assessee that a copy of Form 10CCB and copy of DIC certificate was submitted to the AO but the ld. CIT(A) observed that all the conditions laid down u/s 80IB of the Act are not fulfilled and merely filing of Form 10CCB and DIC certificate does not establish the claim of deduction u/s 80IB of the Act. 9. We have heard the rival contentions and perused the facts of the case. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bhajan Kaur in ITA No.331(Asr)/2013 for the assessment year 2009-10 order dated 06.12.2013, which is squarely applicable to the facts of the present case. In the facts and circumstances of the case, without pointing out any defect in the conditions laid down u/s 80IB of the Act, the Ld. CIT(A) is not justified in confirming the action of the A.O. inspite of the fact that the onus has been discharged by the assessee. Accordingly, the order of the ld. CIT(A) is reversed and the A.O. is directed to delete the addition so made and confirmed by the ld. CIT(A).
10. In the result, the appeal filed by the assessee in ITA No.588(Asr)/2013 is allowed.
Order pronounced in the open court on 2nd September, 2014. X X X X Extracts X X X X X X X X Extracts X X X X
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