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2016 (4) TMI 72 - ITAT JAIPUR

2016 (4) TMI 72 - ITAT JAIPUR - TMI - Disallowance of sundry expenses - Held that:- Expenses claimed by the assessee are nominal and incurred under the head telephone, conveyance refreshment and tours expenses etc. Since the assessee was in the business of statue making and for that purposes all these expenses are required to be incurred and going by the nature of these expenses, it is very difficult for the assessee to maintain the vouchers of each items of tea, coffee, refreshments, conveyance .....

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en the income is required to be taken into consideration. Since in the present case the NSCs were due way back on the date of maturity, therefore, the interest earned on the said NSCs are required to be added to the income of the assessee in the current assessment year. However, the amount of investment i.e. ₹ 55,000/-, is not required to be added in the year under consideration. - Decided against assessee - ITA Nos. 191, 192, 193 & 194/JP/2013 - Dated:- 12-2-2016 - SHRI T.R.MEENA, AM &a .....

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f ₹ 4461/- (being 1/4th of the original disallowance of ₹ 17,846/- made by the ld. AO) claimed on account of sundry expenses, arbitrarily without verifying the genuineness of the claim. Hence the disallowance so made deserves to be allowed. 2. On the facts and in the circumstances of the case the ld. CIT (A) has grossly erred in upholding an amount of ₹ 18,073/- on account of interest on NSC when in fact the same has been duly offered for tax on accrued basis in the relevant ye .....

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nce of ₹ 4289/- (being 1/4th of the original disallowance of ₹ 17,156/- made by the ld. AO) claimed on account of sundry expenses, arbitrarily without verifying the genuineness of the claim. Hence the disallowance so made deserves to be allowed. 2. On the facts and in the circumstances of the case the ld. CIT (A) has grossly erred in not allowing the telescoping, recycling and set off of one income from the other and the action of the ld. CIT (A) in not considering such adjustments d .....

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nces of the case the ld. CIT (A) has grossly erred in upholding the addition of ₹ 10,800/- on account of interest received from notional loans given arbitrarily. 2.1. That the ld. CIT (A) has further erred in sustaining the addition which was calculated on imaginary figures and when in fact no interest has been received by the assessee, hence the addition so sustained deserves to be deleted in toto. A.Y. 2007-08 : 1. On the facts and in the circumstances of the case the ld. CIT (A) has gro .....

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.1. That the ld. CIT (A) has further erred in sustaining the addition which was calculated on imaginary figures and when in fact no interest has been received by the assessee, hence the addition so sustained deserves to be deleted in toto. 2. Since the grounds in all the appeals are common, therefore, we will be deciding the issues by the common order. Ground No. 1 in ITA Nos. 191, 192, 193 & 194/JP/2013 : 3. The AO has disallowed sundry expenses in respect to the assessment years referred h .....

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as upheld 1/4th of the disallowances. The reasoning given by ld. CIT (A) is reproduced herein below :- 7.4. I have carefully considered the submission of the appellant as also the findings of the AO. The AO s contention is that the nature of receipt shown by the assessee does not warrant any expenses and therefore the AO has disallowed all such expenses claimed by the assessee under the head sundry expenses. On the other hand the appellant s case is that regular income is being shown and it cann .....

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fair to disallow all such expenses simply by stating that such expenses are not required to be incurred in such type of business. However, the fact is also that the assessee has claimed such expenses but he has not fully justified such expenses by way of regular books of accounts and authentic bill etc. Keeping in view the fact that such expenses have also been incurred in earlier A.Ys. it will be fair and reasonable to disallow 1/4th of such expenses to cover up any possible leakage on account .....

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by ld. CIT (A). The ld. CIT (A) has whimsically restricted the disallowance to 25% of the expenses. 5.2. On the other hand, the ld. D/R has supported the order passed by the ld. CIT (Appeals). 5.3. We have gone through the record. In our view the expenses claimed by the assessee are nominal and incurred under the head telephone, conveyance refreshment and tours expenses etc. Since the assessee was in the business of statue making and for that purposes all these expenses are required to be incur .....

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assessee has held as under :- 4. It has been noticed from the details filed by the assessee that during the year the assessee has encashed NSCs amounting to ₹ 28,210/-, ₹ 20,150/- and ₹ 24,713/-. The assessee was asked to reply vide order sheet entry dated 18.12.2009 why the interest earned from the NSCs has not been charged to tax in the income computed for the year. The assessee has failed to file reply to the same by 21.12.2009, the date by which he was required to file the .....

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ome of the assessee. In view of the above, I am satisfied that the assessee has concealed the particulars of his income to evade the tax. Therefore it is fit case for initiating penalty u/s 271(1)(c) of the I.T. Act, 1961. 7. The assessee being aggrieved by the order of the AO, has carried the matter before ld. CIT (A) and the ld. CIT (A) after going through the record, has confirmed the order passed by the AO in the following manner :- 9.4. I have carefully considered the submission of the appe .....

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oceedings, the appellant has failed to prove that such interest income was shown on due basis in relevant A.Ys. In the absence of any documentary evidence which may indicate that such income has genuinely been shown, no fault can be attributed to the finding of the AO. Therefore the action of the AO is confirmed. The ground of appeal is dismissed. 8. Now the assessee is before us. 8.1. The ld. A/R for the assessee has submitted that the amount of ₹ 73,073/- was received by the assessee in .....

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