9911796707
TMI Blog2013 (4) TMI 420X X X X Extracts X X X X X X X X Extracts X X X X ..... by cheque No.830072 on dt.12.10.2007 towards a refund of loan. Accordingly, there is no doubt that the loan given earlier by the appellant from his proprietorship concern to M/s. Pal Regency (P) Ltd. has been repaid, even though the receipts & payments have not been set off against each other and both appear in the accounts. This does not make the transactions unexplained expenditure. Thus addition made by the AO is deleted. Prior period expenses - Held that:- No infirmity in the order of the CIT(A) insofar as the addition of Rs.2 lakhs was factually incorrect when the amount owed and due were combined by the AO for holding the same as unexplained expenditure in the case of the assessee is a mere absurdity and not computation of real in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the tune of Rs.42,42,590/-. The addition was made under the head unexplained expenditure to the tune of Rs.2,00,000/- and prior period expenses to the tune of Rs.16,62,705/-. 3. Aggrieved the assessee appealed before the first appellate authority who considered the case of the assessee appellant and considered the facts in detail by observing the following for both the grounds raised by the Revenue before us. "2.1. The appellant explains that the loan of Rs.1 lac was given to MIs. Pal Regency (P) Ltd. by the appellant from his capital account in M/s. Pal Constructions on dt.1.9.2006 by cheque No.816121 on Andhra Bank. This loan was repaid by M/s. Pal Regency (P) Ltd. in the subsequent financial year on dt.12.10.2007 on Andhra Bank. Howe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ddition of Rs.16,62,705/- has been made as prior period expenses. It was stated before the AO that some old bills were outstanding in civil construction works which have been received in the current year. The same has been considered by the AO as prior period expenditure and disallowed. As stated by the appellant, he was to receive some pending bills from Indian Railways pertaining to FY 2006-07 which was received during the FY 2007-08. The said bills were receipts and not expenditure and such receipts have been disclosed in the P L account and income offered to tax. The copies of the P L accounts are also furnished. The P L accounts which has been audited shows that the amount of Rs.16,62,705/- has been credited to the P L account as bil ..... X X X X Extracts X X X X X X X X Extracts X X X X
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