TMI Blog2016 (9) TMI 556X X X X Extracts X X X X X X X X Extracts X X X X ..... e decline to accept conclusion drawn in the first appellate order. At the same time, from the explanation and documents filed by the assessee we clearly observe that the assessee submitted all relevant documents, evidence and explanation within his control to establish its claim and by showing that the payee M/s Vision and Images received payment through banking channels towards bills raised for logo and wall painting which is nothing but actual advertisement and publics expenses. The DR did not take the assessee to submit new address of the payee thus addition cannot be made only because notice u/s 133(b) of the Act could not be served upon the assessee due the reasons beyond control. We may also point out that 10 years have been elapsed a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #8377; 40,59,064/- out of advertising and publicity expenses representing wall painting and other advertisement expenses paid to M/s Vision Images on the alleged belief that the party was merely used as a conduit for providing fake bills of various expenses. 3. The Hon ble CIT(A) has erred in confirming the disallowance of a sum of ₹ 25,136/- representing interest paid to M/s Gee Capital TFS Ltd. being interest on assets on hire purchase on the ground that no TDS has been deducted on the aforesaid interest. Ground No. 2(a) of the assessee:- 3. Apropos above ground, we have heard arguments of both the sides and carefully perused the materials placed on the record of the Tribunal. The ld. Counsel for the assessee h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting of page from earlier place is not a legally tenable ground for making disallowance. The Ld. Counsel vehemently pointed out that lack of funds for business purpose and income of very low amount in the hands of the assessee cannot be a basis for making disallowance and addition in regard to advertisement and publicity expenses genuinely incurred on the assessee by making payment through banking channels thus claim should be allowed and addition may finding by deleted. To support above contentions the Ld. Counsel has placed reliance on the following orders of the Tribunal Hon ble Gujrat High Court:- a. Forte Point Construction P. Ltd 7 ITR 205 [2011] ITAT, Delhi b. ITO Vs. Hardrock Electric Engg Co. ITA No. 4955/Mum/2008, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies in the TDS claim placed by Shri Rajender Kumar, the proprietor of payee firm. After observing above, the CIT(A) upheld the disallowance by concluding that Mr. Rajendera Kumar has been used as a conduit for providing fake bills of various expenses in the various fields. 7. In our considered view the allegations labeled against the payee cannot be held as sustainable and acceptable for making do allowance without bringing on any cogent evidence or allegation to show that the assessee shifted funds in the garb of fake bills by using Mr. Rajendra Kumar as conduit for making false claim. It is also not case of the CIT(A) that Mr. Rajendra Kumar and his payee firm is not in the business of advertisement and publicity and these bills are bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... annot expect the assessee to submit more evidence s to support its claim which is suffice to establish genuineness of the claim which was incorrectly disallowed by the authorities , in view of above discussion, we demolish the conclusion of the CIT(A) and we direct the A.O to allow the claim of the assessee. Accordingly, Ground No. 2(a) is allowed. Ground No.3 8. We have heard arguments of both sides on the issue of disallowance of ₹ 25,136/- representing the amount of interest paid by the assessee to M/s GE Capital TFL (H on hire purchase. 9. On careful consideration of the same we are of the considered opinion that as per CBDT, vide Instruction NO. 1425/CBDT dated 16/11/87 the amount of payment of interest are hire purch ..... X X X X Extracts X X X X X X X X Extracts X X X X
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