9911796707
TMI Blog2012 (11) TMI 615X X X X Extracts X X X X X X X X Extracts X X X X ..... fective grounds. In groundno.1, the assessee has challenged the disallowance of expenditure claimed of Rs.2,50,000/-. Briefly the facts are, the assessee derives income as an agent of LIC of India and Chit and financial companies. For the assessment year under dispute, in the course of assessment proceedings while examining the assessee's return, the AO found that out of total receipt of Rs.17,50,752/-, the assessee had claimed expenditure of Rs.9,94,262/-. From the details of expenditure claimed, the AO found that the expenses claimed weretowards repairs to machinery staff welfare, sales promotion, conveyance, telephone charges and depreciation on car and other expenses. Since the assessee could not produce necessary evidence in support of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re of Rs.9,94,262/- claimed by the assessee. From the computation of income for the subsequent assessment year i.e., asst. year 2008-09, it is seen that on a gross commission receipt of Rs.17,11,275/- the assessee had declared a net profit of Rs.6,87,451/- after claiming expenditure of Rs.10,23,824. The AO while completing the assessment u/s 143(3) has disallowed an amount of Rs.50,000/- from the expenditure claimed. Considering the totality of facts and circumstances involved, ends of justice will be met if the disallowance is restricted to Rs.1 lakh only. Hence, this ground of the assessee is allowed in part. 7. Ground No.2 relates to the addition of an amount of Rs.22,99,500/- u/s 68 being cash deposit made in SB A/c. Briefly the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the detailed list of policy holders and the amounts given by them towards their premiums which are at pages 14 to 16 of the paper book, would clearly establish the fact that the assessee's claim is correct. The learned AR further inviting our attention to the SB A/c which is at pages 17 to 24 of the paper book, contended that the entire cash deposits in the SB A/c are tallied with the statement of policy holders, it will be proved that the said cash deposits in the bank account represented the amounts given by the policy holders to the assessee for remitting towards their LIC premiums. The learned AR further submitted that the similar deposits were also made in the assessee's saving bank account in the assessment year 2008-09 and the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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