TMI Blog2020 (9) TMI 370X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s 153A r.w.s. 143(3). Thus, the above Judgments MEETA GUTGUTIA PROP. M/S. FERNS N PETALS [ 2017 (5) TMI 1224 - DELHI HIGH COURT] and KABUL CHAWLA [ 2015 (9) TMI 80 - DELHI HIGH COURT] are clearly apply in the case of assessee. Further, on identical facts in the case of assessee for the A.Y. 2009-2010 deleted the similar addition. Therefore, following the above decisions and discussion above, we are of the view that both the additions are liable to be set aside. - Decided against revenue. - ITA.No.7338/Del./2017 & ITA.No.7346/Del./2017 - - - Dated:- 8-9-2020 - SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT MEMBER For the Assessee : Shri Somil Agarwal, Advocate For the Revenue : Ms. Nidhi Srivastava ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red freight charges at ₹ 1,88,803/- and ₹ 61,08,132/- in both the assessment years under appeals respectively. Since the assessee could not produce the requisite bills and vouchers in respect of freight charges, the A.O. disallowed the same under section 37(1) of the I.T. Act, 1961. The Ld. CIT(A) dismissed the appeal of assessee. 3. We have heard the Learned Representative of both the parties through video conferencing and perused the material available on record. 4. Learned Counsel for the Assessee at the outset submitted that mere disallowance was made under section 37 of the I.T. Act, 1961 and in the absence of any incriminating material found qua the freight charges, therefore, issue is covered by Judgment of Hon ble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in clandestine operations and that a person indulging in such activities can hardly be accepted to maintain meticulous books or records for long. These factors are absent in the present case. There was no justification at all for the AO to proceed on surmises and estimates without there being any incriminating material qua the AY for which he sought to make additions of franchisee commission. 70. The above distinguishing factors in Dayawanti Gupta (supra), therefore, do not detract from the settled legal position in Kabul Chawla (supra) which has been followed not only by this Court in its subsequent decisions but also by several other High Courts. 71. For all of the aforementioned reasons, the Court is of the view that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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