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TMI Blog2014 (3) TMI 693X X X X Extracts X X X X X X X X Extracts X X X X ..... ting evidence were not produced before the AO – the disallowance is restricted to 40,000/- as against Rs.85,722/- sustained by the CIT(A) – Decided partly in favour of Assessee. Disallowance of conveyance expenses – Held that:- The CIT(A) has recorded that maximum expenses were incurred in cash and are fully verifiable - but, the CIT(A) in his order has also recorded a contradictory finding that all claims were not verifiable - no case of disallowance could be made out by the Revenue – Decided in favour of Assessee. Disallowance because of difference in closing balance – Bogus purchases – Held that:- After considering the volume of the business conducted by the assessee and the fact that the difference in the accounts does not pertain to this year, it has been held that no case of disallowance for the relevant assessment year could be made out by the Revenue – Decided in favour of Assessee. Disallowance of sales promotion expenses – Held that:- The disallowance out of sales promotion expenses at the rate of 10% thereof was made on the plea that the assessee could not furnish any details of the sales made through these parties and the basis for incurring the expenditure - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has opposed the submissions of the learned counsel for the assessee. He submitted that the addition was rightly made by the AO. 8. We have considered rival submissions and perused the orders of the AO and the CIT(A). We find that the issue is covered in favour of the assessee with the decision relied upon by the learned counsel for the assessee (supra), and accordingly, the ground no.3 of the assessee is allowed. 9. The ground no.4 of the assessee is as under: 4. The CIT(A) has erred in confirming the depreciation on dies at 25% as against the claim at 40%. Your appellant submits that the same be directed to be allowed as claimed. 10. The learned counsel for the assessee has not pressed this ground of the assessee, which is accordingly dismissed. 11. The ground no.5 of the assessee's appeal is as under: 5. The CIT(A) has erred in confirming the disallowance of Rs.85,722/- being 20% of the printing and stationery expenses of Rs.4,28,613/-. Your appellant submits that the expenses are genuine and incurred for the purpose of business and ad hoc disallowance without any findings is unjustified and called for. The AO be directed to allow the claim in full. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... full. 19. The learned counsel for the assessee submitted that conveyance expenses incurred only for business purpose, and therefore, no disallowance should have been made. The learned DR submitted that maximum amount out of conveyance expenses was incurred in cash, and therefore, the disallowance was rightly made by the AO, and confirmed by the CIT(A). 20. We have considered rival submissions. We find that the CIT(A) has recorded that maximum expenses were incurred in cash and are fully verifiable. However, the CIT(A) in para 11.2 of his order has recorded a contradictory finding that all claims were not verifiable. In these circumstances, we hold that no case of disallowance could be made out by the Revenue, and accordingly, the ground no.8 of the assessee is decided in favour of the assessee and is allowed. 21. The ground no.9 of the assessee's appeal is as under: The CIT(A) has erred in confirming the disallowance of Rs.21,379/- being the difference in closing balance of creditors account considering the same as bogus purchases. Your appellant submits that the CIT(A) has confirmed the addition without considering the facts of the case and hence it is submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmitted that the addition was rightly made by the AO. 29. We have considered rival submissions and perused the orders of the AO and the CIT(A). We find that the issue is covered in favour of the assessee with the decision relied upon by the learned counsel for the assessee (supra), and accordingly, the ground no.3 of the assessee is allowed. 30. The ground no.4 of the assessee is as under: 4. The CIT(A) has erred in confirming the depreciation on dies at 25% as against the claim at 40%. Your appellant submits that the same be directed to be allowed as claimed. 31. The learned counsel for the assessee has not pressed this ground of the appeal of the assessee, which is accordingly dismissed. 32. The ground no.5 of the assessee's appeal is as under: 5.The CIT(A) has erred in confirming the disallowance of Rs.13,791 and Rs.30,066 being 10% of the sales promotion expenses and conveyance expenses. Your appellant submits that the disallowance is without verifying the full facts of the case and hence, be deleted. 33. We have heard the parties. We find that conveyance expenses and sales promotion expenses were justified and the AO has not pointed out any item o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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