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TMI Blog2014 (5) TMI 392X X X X Extracts X X X X X X X X Extracts X X X X ..... over the expenses – Held that:- CIT(A) was of the view that there is no need to make any addition on ad-hoc basis on the account simply stating that reasons that the vouchers were not made by the party – there was no infirmity in the finding of CIT(A) while allowing disallowance made by AO – Decided against Revenue. Addition of unexplained amount – Held that:- CIT(A) was of the view that the assessee was of the view that the difference was not on account of cessation of liability, it will not fall u/s 41(1) of the Act - no other section can bring such differences into tax since the amount of difference was a balance-sheet item and not debited to profit and loss account at any earlier point of time - it was not excess money received by an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e parties were paid part of the outstanding amount in installments of Rs. 20,000/- each by cash during the year. However the receipts acknowledging the money by the sundry creditors were not produced during the course of assessment proceedings. Assessee was asked to furnish the confirmation from these sundry creditors. The assessee did not file confirmation nor their latest addresses. AO therefore was of the view that assessee has failed to discharge the onus to prove that the sundry creditors existed on 01-04-2004 and 31-03- 2005. He therefore added Rs. 55,90,682/- appearing in the books of account as on 01-04-2004 to the income of the assessee on account of the following sundry creditors by observing that closing balances in those account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s which has been allowed by Ld. CIT(A). 7. AO observed that assessee in his proprietary concern M/s Deepti Engineering has claimed salary and wages expenditure of Rs. 8,02,450/-. All the expenses were paid in cash and supported by vouchers and muster register. It was noticed by the AO that it cannot be stated that the expenditure of Rs. 8,02,450/- incurred for the purpose of business only. In view of these, AO was of the view that the expenditure claimed in the head of salary and wages were not verifiable and cannot be allowed fully. Therefore amount of Rs. 1,20,368/- i.e. 15% of Rs. 8,02,450/- was disallowed and added to the income of the assessee. 8. Before Ld. CIT(A) salary and wages registers were produced to show that payments we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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