TMI Blog2021 (7) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... details relating to the source of funds have been submitted by the assessee. In view of the above, delete the said addition. This ground of appeal is allowed. Expenditure of staff salary, payment of rental, professional expenses etc - Disallowance on the ground that these expenses are liable to be capitalized u/s 57(iii) - HELD THAT:- No doubt, there was no order received by the assessee from customer creating lull in the business but assessee remained into manufacturing activities during the year under assessment. In these circumstances necessary expenditure of staff salary, payment of rental, professional expenses etc. are required to be incurred to keep the business alive. Their machines remained in operative posture. CIT(A) has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... increase in share capital to ₹ 26,00,000/- as compared to F.Y. 2010-11 which was shown as ₹ 18,00,000/- and ₹ 1,92,00,000/- is added during the F.Y. 2011-12 in share premium account so the CIT(A) contention that ₹ 2,00,00,000/- has been received in F.Y. 2010-11 is not tenable, and not supported y evidence. 2. CIT(A) has erred in deleting the addition of ₹ 26,33,675/- made u/s 57 of the I.T. Act. During the assessment proceedings, the assessee stated that he has expanded its business in the year 2011-12 and commenced the operation of its MS rolling unit in khuskhera, Rajasthan. However, the assessee company failed to produce any documentary evidence regarding commencement of business operation/production f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the case reveals that the amount of ₹ 2,00,000/- was received during the AY 2011-12. During the year under consideration, the share application money received in the previous year was transferred to the share capital a/c and share premium a/c. Therefore, the amount cannot be added in the 2012- 13. Moreover, it is also supported by the documents on record. In the circumstances, the addition cannot be made during this assessment year but should have been examined in the previous year. It is also pertinent to note that all details relating to the source of funds have been submitted by the assessee. In view of the above, I delete the said addition. This ground of appeal is allowed. 6. When undisputedly assessee has received the am ..... X X X X Extracts X X X X X X X X Extracts X X X X
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