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2014 (2) TMI 1066 - ITAT DELHIGenuineness of expenses - Whether CIT(A) was right in deleting the disallowance made by the Assessing Officer when the expenses were highly inflated by the assessee under the head bank charges and interest, conference and membership fee, charity and donation etc. – Held that:- The CIT(A) has rightly appreciated the fact that the assessee is the proprietor of two concerns and both the concerns were functioning from the same premises and were doing the same business and the employees were the same for both the concerns - Therefore the income of the assessee’s receipts and expenditure he incurred are from one source only - the proprietorship is a type of business entity that is owned and run by a single individual and there is no legal distinction between the owner and the business – the CIT(A) has rightly appreciated the facts in this matter and has rightly deleted the said addition made by the Assessing Officer – thus, there was no infirmity in the order of the CIT(A) – Decided against Revenue. Genuineness of creditors - Deletion on account of outstanding credit to M/s. Tajikistan Airlines - Held that:- CIT(A) rightly held that since the assessee did not benefit or gain from the said transaction he has shown it as liability in his balance sheet as ‘creditor’ and due to dispute with the airlines, the assessee was unable to furnish the confirmation from the said airlines - till the time the payment is made by the said airlines to the assessee or vice-versa the value of the benefit would not be accruing to either of the parties - If the value of the benefit goes in favour of the assessee it would be deemed to be the profit and gains of business, which otherwise would not be the income - The value of the benefit would be made chargeable to income tax as the income of the previous year in which such benefit was obtained and not otherwise – the amount was obtained by the assessee for selling the said airlines tickets for FY 2004-05 and the said amount has not been transferred to the account of the airlines -the liability has not been discharged by the assessee during the relevant Assessment Year since the matter is sub-judice before the Hon’ble Delhi High court – There was no infirmity in the findings of the CIT(A) and the decision to delete the addition is valid – Decided against Revenue.
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