9911796707
TMI Blog1980 (8) TMI 112X X X X Extracts X X X X X X X X Extracts X X X X ..... tune of Rs. 96,836. The ITO required the assessee to furnish details of the above expenses. The assessee explained that the above expenses were in the nature of advertisement, publicity and sales promotion undertaken by the outside parties, i.e., Distributors/Agents on behalf of the assessee firm. The Details of the expenses partywise showing Rs. 1,000 were filed. The ITO examined the details and found that there was no confirmation from the various sub-agents who allegedly incurred the expenses on behalf of the assessee firm. No agreement, in this connection, was said to have been entered into with the assessee and the various agents and distributors. Considering the extent of these expenses and in the absence of necessary confirmations f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account of gift-coupons, sample-beedis and other material. No details of the parties to whom the payments on account of gift-coupons, sample beedis or other material were made available to us. Under these circumstances, the disallowance of Rs. 3,500 out of advertisement expenses is upheld. 7. The last ground of the assessee is against the addition of Rs. 5000 on account of cash credit in the name of Shri Naresh Kumar Narharia. 8. The ITO required the assessee to establish the identity of the creditor and the convenience of the cash credit appearing in his name. No such evidence was furnished before the ITO. The ITO, therefore, added back the sum of Rs. 5,000 appearing as cash credit in the name of the above creditor. 9. On appeal, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he should examine the veracity of the confirmation certificate and give his finding with regard to the genuineness or otherwise of the sum of Rs. 5,000 appearing in the books of accounts of the assessee during the relevant accounting period. If considered necessary, the ITO may also examine the creditor. 12. In this appeal, the assessee's only objection is that the CIT (A) was not justified in upholding the levy of interest under s. 216 of the IT Act. 13. The return of income for the asst. yr. 1976-77 was filed by the assessee showing the total income of Rs. 1,82,100. The ITO completed the assessment as a total income of Rs. 2,05,600 and that at the time of completion of the assessment, he directed the levy of interest under s. 216 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rties, we are of the opinion that interest under s. 216 was wrongly charged in this case. There is no evidence to show that any estimate of advance tax as per the provisions of s. 212 (3) was filed and there was no question of levy of any interest under s. 216 of the IT Act. There is no merit in the contention of the learned representative of the Department that interest was charged under s. 217, but it was wrongly mentioned as under s. 216 as there is no material on record to support the above contention. On the other hand, we find that the ITO has in fact charged interest under s. 216. Since no interest was chargeable under s. 216 in this case, we delete them of interest demanded from the assessee under s. 216. 15. In the result, the I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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