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2014 (3) TMI 1209 - ITAT CHANDIGARHAddition on account of credit entries - Addition u/s 41(1) - HELD THAT:- The amounts outstanding against the assessee are relatable to the transactions conducted in the earlier year and were brought forwarded from year to year in the hands of the assessee and the said amount had not been paid by the assessee and the same are outstanding and the assessee acknowledges the same. In such circumstances where the assessee continues to recognize the cash credits as payable by him and also on account of the amount not being disbursed till date on account of commission payable, does not justify the invoking of provisions of section 41(1) of the Act against the assessee Accordingly, we direct the Assessing Officer to delete the addition under section 41(1) - The ground of appeal Nos.2 and 3 raised by the assessee are thus allowed. Addition on advances received - HELD THAT:- Despite several opportunities the assessee failed to produce the evidence in respect of the said advances and the said were treated as income of the assessee. Even before the CIT (Appeals) the assessee furnished copies of account of the said party and stated that the outstanding balances in the accounts of the said party were on account of purchases. The second advance of Rs.3,97,000/- outstanding in the account of M/s M.K. Industries was claimed to have inadvertently shown as advance from customers. Although the said amount outstanding was on account of purchases, however the assessee failed to furnish any evidence in respect of the same and the addition was confirmed in the hands of the assessee. The assessee had filed to furnish any further evidence before us and in view thereof we find no merit in the ground of appeal No.4 raised by the assessee and the same is dismissed. Disallowance of various expenses - AO during the course of assessment proceedings had noted the assessee to have incurred expenses on repair and maintenance, advertisement, postage & courier, printing & stationery, traveling expenses and Diwali expenses and disallowed - HELD THAT:- The said disallowances were made in the hands of the assessee as the assessee had failed to produce the bills and books of account before the Assessing Officer. In the totality of the facts and circumstances of the case, we uphold the disallowance in the hands of the assessee. However, we restrict the same to Rs.25,000/-. The ground of appeal No.6 raised by the assessee is partly allowed. Disallowance of 1/5 th out of car expenses and depreciation on car for personal use of car - HELD THAT:- We restrict the said disallowance for personal use of the vehicle by the assessee to the extent to 1/10 t h of the total expenditure. The ground of appeal raised by the assessee is thus partly allowed.
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