9911796707
TMI Blog2022 (10) TMI 719X X X X Extracts X X X X X X X X Extracts X X X X ..... se as culled out from the material on record are as under:- 3. Assessee is an individual who filed his return of income for A.Y. 2016-17 on 17.10.2016 declaring total income of Rs.10,89,640/-. The assessee thereafter, revised its return of income on 23.11.2016 declaring total income of Rs.15,14,640/-. The case was selected for scrutiny and accordingly, notices u/s 143(2) & 142(1) of the Act were issued by the AO. AO has noted that assessee did not file any reply in response to notices u/s 143(2) & 142(1) of the Act. Accordingly framed assessment u/s 144 of the Act vide order dated 30.12.2018 determining the total income at Rs.2,50,73,136/-. 4. Aggrieved by the order of AO, assessee carried the matter before CIT(A) who vide order dated 13. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs.62,34,024/-. AO noted that assessee was asked to furnish the details of expenses and justified as to how the expenses were genuine and for the purpose of business. AO noted that assessee did not file any evidence to support the claim of the expenses. He, therefore, held the genuineness of purchases, all expenses and depreciation amounting to Rs.4,71,16,995/- to be un-established and un-substantiated. He thereafter, disallowed 25% of those expenses amounting to Rs.1,17,79,248/- and made its additions. 8. Aggrieved by the order of AO, assessee carried the matter before CIT(A). Before CIT(A), assessee inter alia submitted that AO has noted an incorrect finding that no details were filed before the AO but however the facts remained that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would not require any adjudication. 11. We have heard the rival submissions and perusal the material available on record. We find that AO while confirming the assessment had disallowed on ad-hoc basis the 25% of the creditors holding it to be unexplained and 25% of the expenses by holding it to be not genuine and not for business purpose. We find that CIT(A) while deleting the addition has given a finding that as far as sundry creditors are concerned in the remand report the AO has accepted the creditors to be genuine and therefore, in such a situation, the holding of 25% of the creditors to be not genuine was not justified. With respect to the disallowance of other expenses, CIT(A) has given a finding that the accounts of the assessee was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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