9911796707
TMI Blog2012 (12) TMI 91X X X X Extracts X X X X X X X X Extracts X X X X ..... sion payments have been made through account payee cheques - addition deleted – in favor of assessee Addition on account of bogus purchases – Held that:- Sale value of oil coolers was disclosed in the books of accounts which the AO himself admitted - On verification of the books of accounts, bills and vouchers found the contention of the assessee to be correct. The assessee filed ledger account, copy of the draft and bills of M/s. Akil Corporation at pages 71, 72 and 73 of the paper book to show that purchase of Rs.1,18,000/- have been made which are recorded in the books and payments are made through banking channel - addition deleted – in favor of assessee Addition on account of excess payment to persons specified u/s 40A (2) (b) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. Total liability in respect of these parties was claimed at Rs.11,16,836/-. The assessee explained that the labourers have no permanent residence; therefore, they are not traceable. The AO was of the view that the assessee had paid the labourers for repairs of the D. G. sets and they would be skilled workers. Part payment was made after long period. If such parties have no fixed address they would not wait for longer period for payment. Similarly, for transportation charges the transporters would not change their address frequently. In the case of two persons to whom commission was paid the entire amount of more than Rs.1,50,000/- was outstanding at the end of the year and notice in their case also could not be served. The AO, therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r in the matter. As regards commission payment also it was found that same was made to them for business brought for the assessee and both the commission agents have been paid in subsequent year through account payee cheques. Addition was accordingly deleted. 4. The learned DR relied upon the findings of the AO and submitted that genuineness of the expenses have not been proved by the assessee. On the other hand, the learned Counsel for the assessee reiterated the submissions made before the authorities below and referred to reply (PB 4 and 5) and submitted that commission was paid for enhancing the sales. 5. On consideration of the rival submissions, we do not find any merit in this ground of appeal of the revenue. The AO noted that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o bill was filed for purchase of the remaining two oil coolers. The AO, therefore, held that two oil coolers valued at Rs.80,000/- each were purchased from undisclosed sources and made the addition. Further, the AO issued notice u/s 133 (6) of the IT Act to M/s. Akil Corporation for verifying the purchase made by the assessee. The said concern has shown two sales to the assessee but the assessee recorded only one purchase in the books. The assessee made payment by Demand Draft but the AO was of the view that Rs.1,18,000/- was paid out of undisclosed income and made the addition. It was submitted before the learned CIT(A) that sale value of oil coolers was disclosed in the books of accounts which the AO himself admitted. The assessee had rem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s. Akil Corporation at pages 71, 72 and 73 of the paper book to show that purchase of Rs.1,18,000/- have been made which are recorded in the books and payments are made through banking channel. The learned CIT(A) on proper appreciation of the facts rightly deleted the addition. No infirmity is pointed out in the order of the learned CIT(A). Therefore, ground No.2 of the appeal of the revenue is dismissed. 9. On ground No.3, the revenue challenged the deletion of addition of Rs.2,20,000/- made on account of undervaluation of closing stock. Due to addition made on ground No.2 above, further addition was made by enhancing the value of closing stock. The learned CIT(A) following the finding on ground No.2 deleted the addition. Both the par ..... X X X X Extracts X X X X X X X X Extracts X X X X
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