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TMI Blog2014 (8) TMI 274X X X X Extracts X X X X X X X X Extracts X X X X ..... 3,54,879/- (c) Disallowance out of Telephone, Conveyance, Cartage etc. 3. The facts relating to the case are set out in brief. The assessee is carrying on the business of purchase and sale of empty bottles and broken glasses under the name and style "Enar Bottles Supplying Co." The return of income for the year under consideration was filed by the assessee declaring a total income of Rs. 19.18 lakhs. In the scrutiny proceedings, the assessing officer noticed from the ITS details that the assessee has received contract receipts of Rs. 79,77,554/- from M/s Haldyn Glass Gujrat Ltd. The AO was of the view that the assessee did not declare the same in his return of income and hence sought clarification from the assessee. In response thereto, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /- and above, along with their account copies. The AO also asked for the reason, if it is outstanding for more than 6 months. However, the assessee did not furnish any detail. The AO noticed that the assessee has shown 170 people as Sundry creditors and outstanding amount in respect of each of them ranged from Rs. 17,000/- to Rs. 74,000/-. The AO noticed that the assessee has claimed that he has made purchases exceeding Rs. 20,000/- from two persons viz., M/s G.M. Breweries Ltd and M/s Vishal Glass. Hence, the AO presumed that most of the creditors are outstanding for more than one year. The AO was of the view that the lower income groups only collect empty bottles and broken glasses from streets and sell them to the assessee. Hence, they c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee. The same resulted in enhancement of income by Rs. 10,16,271/-, meaning thereby the Ld CIT(A) sustained addition to the above said extent in the place of Rs. 73,54,879/- assessed by the AO. Since the business income was estimated, the Ld CIT(A) held that there is no requirement of making separate disallowances debited in the Profit and Loss account and accordingly deleted the disallowance made out of telephone, staff welfare, Conveyance expenses etc. Aggrieved by the decision of Ld CIT(A), the revenue has filed this appeal before us. 5. We have heard rival contentions and perused the record. The Ld D.R strongly defended the order passed by the AO on the impugned issues. On the contrary, the ld A.R placed strong reliance on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he profit and loss account by crediting the "Cartage expenses" account with the above said amount. When the assessee has duly accounted for the amount of Rs. 87,24,320/- in its account and has also brought the same to the Profit and Loss account through the "Cartage Account", we do not find any reason to assess it again. Accordingly, we do not find any infirmity in the decision taken by ld CIT(A) on this issue. 7. The next issue relates to the assessment of Sundry creditors balance of Rs. 73,54,879/-. The AO assessed the same on the reasoning that (a) the suppliers of empty bottles and broken glasses are poor people, who could not afford giving credit to the assessee. (b) the assessee has failed to furnish relevant details concerning the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he submissions made by the assessee before Ld CIT(A) would show that the assessee has challenged the presumption entertained by the AO. He has submitted that the view entertained by the AO that they are outstanding for more than one year is wrong. He has also pointed out that the purchases exceeding Rs. 20,000/- was effected from more than two persons and accordingly submitted that the observations made by the AO in this regard is also wrong. He has also submitted that no creditor's balance was outstanding for more than six months. The above submissions made by the assessee before the ld CIT(A) shows that the assessing officer has also appears to have acted in a hasty manner on this issue. 10. In any case, there should not be any doubt tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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