TMI Blog2023 (10) TMI 1019X X X X Extracts X X X X X X X X Extracts X X X X ..... l items calculated the suppression in the value of stock and calculated the understatement of closing stock at 50% of the suppressed stock value without any basis and without any reasoning. Addition made by the AO is purely based upon conjectures and surmises as the AO has failed to taken note of the evidences filed by the assessee before the AO in the form of purchase bills, stock register etc. and also the fact that the wastage and breakage sustained by the assessee in the ordinary course of business. Under these circumstances, we are inclined to set aside the order of Ld. CIT(A) and direct the AO to delete the addition. Thus, ground no. 1 raised by the assessee is allowed. Addition of publicity expenses - HELD THAT:- AO has cited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e action of the Ld. CIT(A) to confirm the addition made by the AO of Rs. 11,00,120/- on account of publicity expenses not accounted for in the receipt sides of the books is contrary to the material evidences of record and the addition is arbitrary, excessive and illegal. 3. That the order of the Ld. CIT(A) confirming the action of the A.O. is arbitrary, excessive and illegal. 4. That the above grounds of appeal will be argued in details at the time of hearing and the appellant craves leaves to submit additional grounds of appeal if any and or alter, vary, modify or rectify the statement of facts and grounds of appeal at or before the time of hearing. 3. The issue raised in ground no. 1 is against the confirmation of addition o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e that the assessee has maintained stock register recording therein opening stocks, purchases, sales and closing stocks including item-wise identification of each brand. Similarly, the assessee has maintained the excise register also. Both these were produced before us and were test checked by us. We observe from the assessment order that the AO while taking a few items out of the total items calculated the suppression in the value of stock at Rs. 29,33,243/- and calculated the understatement of closing stock at 50% of the suppressed stock value without any basis and without any reasoning. In our opinion, the addition made by the AO is purely based upon conjectures and surmises as the AO has failed to taken note of the evidences filed by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the recurring schemes of publicity floated by manufacturers of liquor under which the assessee is allowed to incur the publicity expenses which were duly reimbursed to the assessee. The AO has cited the only reason for disallowance that the assessee has failed to prove that these are only and exclusively for the purpose of business of the assessee whereas on the other hand the assessee is in the business of liquor trading and has received the reimbursement of publicity expenses from the suppliers of liquor after the same were incurred by the assessee. Therefore, to say that these expenses were not exclusively incurred for the purpose of business of the assessee would be contrary to the facts of the case. In our opinion, the AO has wrongly ..... X X X X Extracts X X X X X X X X Extracts X X X X
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