TMI Blog2016 (5) TMI 532X X X X Extracts X X X X X X X X Extracts X X X X ..... od of three years it does not mean that outstanding liability of assessee has cease to exist more so when assessee had not written it off such liability in his P & L A/c. The provisions of section 41 of the I.T. Act are not applicable in the present case. Hence, we allowed this ground and direct the AO to delete the additions - Decided against revenue - I.T.A. No. 6458/Mum/2013 - - - Dated:- 6-4-2016 - SHRI B.R. BASKARAN, AM AND SHRI SANDEEP GOSAIN, JM For The Appellant : Shri Pramod K. Parida For The Respondent : Shri Uday K. Jakke ORDER Per Sandeep Gosain, J. M.: The Present Appeal has been filed by the assessee against the order of Commissioner of Income Tax (Appeals)- 9, dated 13.09.2013 whereby CIT(A) has p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll expenses pertaining to her association with the Appellant's business including expenses on her foreign travelling in respect of all earlier years had been allowed by the Revenue; therefore, on the principle of consistency, the present year's expenses as exclusively incurred for the purpose of Appellant's business should have been allowed. 2. Addition u/s. 41(1) - ₹ 1,60,306/- i) The Id. CIT(A) erred in confirming the addition u/s. 41 (1) without appreciating that age of the clients' running account balance is not the sole criteria to confirm the addition since the trade advances received by the Appellant was against future supplies which should not partake the character of deemed income as it is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowed and added to the total income of the assessee. 3. Aggrieved by the order of the AO, assessee filed an appeal before the CIT(A) and the CIT(A) partly allowed the appeal filed by the assessee but sustained both the additions mentioned above. 4. Aggrieved by the order of the CIT(A) the assessee filed the present appeal before us on the grounds mentioned herein above. Ground No. 1 5. This ground relates to disallowance of business associates foreign travelling expenses. We have heard the counsels for both the parties and we have also perused the documents placed on record and the orders passed by revenue authorities. We found that CIT(A) while deciding the said ground has categorically mentioned that the appellant is in bus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed at length in order to support this issue, but there is no documentary evidence which could support the claim of the assessee that his wife has actually assisted him throughout these trips in any of his business activity. The assessee has not placed on record any documentary evidence which can connect the wife of the asessee with the affairs of his business. 6. Therefore, considering the totality of the facts of this case we are of the considered view that, we see no reasons to interfere or deviate from the findings recorded and orders passed by the CIT(A) and hence this ground of appeal raised by assessee stands dismissed and the orders passed by CIT(A) are upheld. Therefore, we dismiss this ground of appeal raised by assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... voking the deeming provision of Sec.41(1) this view finds the support of the following Judicial Rulings: (199) 236 ITR 518 (SC) CIT Vs. Sagauli Sugar Works Pvt. Ltd. (2010) 325 ITR 593 (P H) CIT Vs. Smt. Sitadevi Juneja Permaseal Auto Products Pvt. Ltd. Vs. ITO ITA No.2360/M/2010, Date of Order:25.05.2011. 7.1 We have noticed that in the present case AO has made additions merely on the ground that the name of sundry creditors are found to be appearing for more than three years and only on this basis additions have been made. After appreciating the facts of the case we are of the considered view and hold that merely because the accounts have become non operation for a period of three years it does not mean that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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