9911796707
TMI Blog2012 (9) TMI 798X X X X Extracts X X X X X X X X Extracts X X X X ..... ightly deleted the disallowance Dis-allowance of write off of irrecoverable advances to the fabricators, employees and suppliers during the year 1996-1999 – claim dis-allowed on the basis that the assessee could not furnish documentary evidence in support that the expenses were related to business – Held that:- Contention of the assessee remained that advances were irrecoverable on ground that employees had left their job and the business with the old fabricators, suppliers were also discontinued. We are of the view that maintenance of books of account in regular course of business is also a good evidence to be relied upon. The same cannot be ignored simply because it is not supported with documents thereto when the details of the perso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO to revise the assessment order after proper verification/inquiry of the expenses claimed by the assessee on A) selling and contribution expenses (Rs.16,28,019.95/-), B) Ex-gratia to Contractors (Rs.1,45,000/-) C) Advances written off (Rs.4,34,601.06/-). The AO concern passes the order u/s 143 (3)/263 on 22.10.2007 wherein he has disallowed the following expenses. 1) Selling and Distribution expenses amounting to Rs.16,28,019.95, which are claimed as allowable expenses as they are related to business of the Appellant only. (i) Packing material and packaging charges Rs.5,78,799.10 (ii) Freight, Cartage Octroi (Locals) Rs. 77,003.00 (iii) Quality Control expenses incurred for Inspec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al who in turn procure export orders for the assessee company. 3. In support of the ground the Ld. DR has basically placed reliance on the assessment order. He submitted that the Ld. CIT(A) has deleted the disallowance without appreciating that the assessee has thoroughly failed to establish the claimed expenditure. There are two entities. One is Ramnath Export Pvt. Ltd. i. e. assessee and the other is M/s Ramnath International which is a proprietor concern of the director of the assessee company. Since samples and models for the prospective foreign buyers were sent by M/s Ramnath International, the expenditure if any was incurred by Ramnath International and not by the assessee as questioned. 4. The Ld. AR on the other hand tried to ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The same is upheld. The ground no. 1 is accordingly rejected. 6. Ground no. 2 is related to the disallowance of Rs.4,34,000/- claimed to have been made advances to the fabricators, employees and suppliers during the year 1996-1999 which became irrecoverable. The contention of the assessee remained that the employees had left their job and the business with the old fabricators/ suppliers were also discontinued. Thus the management of the assessee company felt that these are no longer recoverable and the same were written off. It was claimed that these advances were made in the ordinary course of the business. The AO has disallowed the claimed irrecoverable amount on the basis that the assessee could not furnish documentary evidence in su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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