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TMI Blog2016 (7) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... turnover declared by the assessee appellant at Rs. 3,07,22,588/-. (ii) On the facts and circumstances whether the Ld. CIT(A) was right in deleting the addition of Rs. 6,88,437/- on account of DEPB amounting to Rs. 1,12,982/-, discount Rs. 1,79,902/-, Duty drawback (Bangalore) Rs. 31,100/- and Duty drawback (New Delhi) Rs. 3,64,453/-. (iii) On the facts and circumstances whether the Ld. CIt(A) was right in deleting the addition on account of disallowance of license fees amounting to Rs. 17,13,388/-." 3. The appeal was earlier dismissed as being defective vide Tribunal order dated 20.12.2013. However, on an application filed by Revenue the said order was recalled vide Tribunal order dated 12.09.2014 as Revenue had removed the defects/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which was paid through ICICI Bank and details of which was produced before learned CIT(A) besides Assessing Officer. He submitted that learned CIT(A) after going thorough the complete records had rightly deleted the addition as the addition made by Assessing Officer was not based upon the facts as assessee had duly recorded the payments. 6. As regards the rejection of books the learned AR submitted that Assessing Officer had rejected the books of account merely holding that assessee had not recorded the expenditure of rent paid to Windsor Hotel Golf Course Road, Banglore whereas the fact remains that assessee had made payments through its bank account and had duly recorded the same in its books of account and therefore, the basis of rejec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account since the total expenditures are not recorded which makes the entire version of books of account suspect. Hence the books of-account/ financial statements furnished by the assessee as well as the audit report is deficient given the fact that these do not reflect complete picture of contemporary record of financial events. Moreover the cash book was not furnished from which the purchases and other expenditures passed through the cash book could have been verified. Resultantly correct examination of contra entries could not be made. In light of the above defects in the books of accounts, the counsel was explained that provisions of section 145(3) were attracted. In light of the aforementioned defects observed in the complete boo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s thereof were made through bank account and in view of the above facts the rejection of books of account was not justified specially keeping in view the fact that Assessing Officer did not find any deficiency in the sales, purchases, opening stocks and closing stock of the assessee. The contention of the Assessing Officer that rent expenditure of 17,13,388/- was incurred out of unexplained sources is also not correct as learned CIT(A) in this respect has made a clear finding of fact and therefore, the basis which was taken by Assessing Officer for rejection of books of account is also not valid. The Assessing Officer without comparing earlier year results of the assessee applied 6% net profit rate without any basis and therefore, action of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yments were vouched for and infact the total payment is Rs. 19,82,620/- which is on account of license fee instead of Rs. 17,13,386/- as held by the AO. The appellant has paid license fee in preceding years for Rs. 16.67 lacs and 12.98 lacs for the year ending 31.03.08 and 31.03.07 respectively. The appellant has placed before me the complete detail of payments to ITC the Windsor Hotel through its account in ICICI Bank. In view of above facts I hold that the AO has erred in making addition of Rs. 17,13,388/- on account of unexplained expenditure u/s 69C of the I.T. Act, therefore, delete the said addition." From the above findings we find that Assessing Officer made the addition without any basis and which learned CIT(A) had rightly de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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