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TMI Blog2013 (9) TMI 873X X X X Extracts X X X X X X X X Extracts X X X X ..... practice is not in accordance with law, therefore, such action of the AO is not sustainable – As regards claim of expenditure and addition to the extent of Rs.5,00,000/-, it has been sustained for want of verification of expenditure and others – It has been rightly allowed relief of Rs.45,46,166/- as sustaining 50% of expenses and running a business with remaining 50% expenses is impossible. Addition on account of creditors – Held that:- AO has accepted the document filed by the assessee containing copy of bank statement and confirmation and the AO did not doubt about the genuineness of those parties. The AO himself recorded the fact in the remand report that he has also accepted the statement of almost all the creditors recorded on 27. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order of the CIT (A) which allowed relied of Rs.45,46,166/- on account of disallowance out of expenses though the assessee had failed to produce books of account and prove the genuineness of expenses claimed at a time of assessment. Therefore, expenses remained unexplained and A.O rightly disallowed expenses @ 50%. 4. That the Hon'ble ITAT has erred in confirming the order of the CIT (A) which restricted the addition on account of unconfirmed creditors of Rs.1,26,51,811/- to Rs. 40,998/-, since the genuineness of these creditors could not be provide beyond doubt at the time of assessment. 5. During the remand proceedings the A.O recorded a finding that the assessee produced books of account including ledger and cash book along with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich are filed in the paper book. The A.O has recorded blind in correct fact which is not appreciable. Merely mentioning that the case is going to be barred by limitation on 31.12.2010 the A.O has taken shelter and on the basis of incorrect fact made the assessment under Section 144 of the Act. Such a practice is not in accordance with law, therefore, such action of the AO is not sustainable. As regards the submission of the ld. Departmental Representative of sending back the matter to the file of AO, we find that the CIT (A) has provided opportunity of hearing to the AO also and the AO has filed the remand report. Copy of remand report filed by the AO has also been furnished by the ld. Departmental Representative before us. The CIT (A) befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e finding of CIT (A) in respect of disallowed amount as well as on account of creditors being the addition made under Section 68. In the light of the fact, we confirm the order of CIT (A)." 7. Shri Dhananjay Awasthi appearing for the revenue submits that the CIT (A) and ITAT have erred in law in giving relief of Rs.45,46,166/- in respect of the expenses and have further erred in law in believing the genuineness of the credits of Rs.1,25,69,815/-. 8. We have carefully perused the orders passed by the CIT (A) and ITAT, and find that the findings recorded by them are finding of fact, which do not raise any question of law to be considered by the Court. The CIT (A) found that the books of account were produced and were relied upon to allow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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