TMI Blog2017 (4) TMI 1404X X X X Extracts X X X X X X X X Extracts X X X X ..... tion is on a wrong footing. - Decided in favour of assessee. Allowing the VAT expenses - Held that:- AO had made the disallowance without any valid reason, that the assessee had made the VAT payment for the year under consideration are the challans evidencing the payment of VAT on various dates.In these circumstances,we are of the opinion that order of the FAA does not suffer from any infimity. So, confirming the same we decide second effective Ground against the AO.- Decided in favour of assessee. - I.T.A. 960/Mum/2015 - - - Dated:- 12-4-2017 - S/Shri Rajendra,Accountant Member and Ram Lal Negi,Judicial Member For the Appellant : Shri M.C. Omi Ningshen-DR For the Respondent : Shri Bhupendra Shah ORDER PER RAJENDR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring the above facts, the AO held that onus was on the assessee to prove the genuineness of the expenditure which he had claimed as deduction in computing the taxable income,that assessee was aware that he was entering into colourable transaction with the alleged suppliers, that the sales tax Department had recorded a statement of the proprietors of these forms, that the copy of the statements were supplied to the assessee as per the letter dated 22/01/2014, that the assessees argument of genuine purchases was not tenable, that the purchases made by him were bogus, the supplier said agreed to have issued only bogus bills. He held that the expenditure incurred by the assessee on account of purchase of goods had to be treated as unexplained e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies were mere accommodation entries and that no real purchases were made.He treated the expenditure on purchases as unexplained expenditure u/s. 69C of the Act and added the same to the income of the assessee.Deciding the appeal, the Tribunal has held as under:- 9. Be that as it may, invoking of Sec. 69C of the Act in the present case is also suspect. Sec. 69C of the Act prescribes that where in any financial year an assessee has incurred any expenditure and he offers no explanation about the source of such expenditure or part thereof, or 9 Shri Karsan Nandu ITA No. 2651/Mum/2016 CO 197/Mum/2016 the explanation offered by him is not found to be satisfactory by the Assessing Officer, then the amount covered by such expenditure or part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee deserves to succeed. Respectfully following the above, and other orders referred to by the assessee we decide the first effective Ground raised by the AO against him. 3.Next ground of appeal is about allowing the VAT expenses,amounting ₹ 61.41 lakhs. During the assessment proceedings,the AO found that in the profit and loss account the assessee had claimed expenditure of ₹ 89.47 lakhs under the head VAT expenses. He directed the assessee to furnish the details in that regard .After considering the submission of the assessee, he held that payment made during the year,amounting to ₹ 61.41 lakhs, pertained to earlier year, that same could not be allowed as an allowable expenditure for the year under considerati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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