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TMI Blog2016 (3) TMI 497X X X X Extracts X X X X X X X X Extracts X X X X ..... ee’s prayer for admission of the additional evidences should be accepted. Accordingly, we admit the additional evidences and since they require proper examination, we set aside the order of the ld. CIT(A) in respect of the additions covered by the affidavits given by M/s Innovative Information Technology Pvt. Ltd, Shri Rajiv Jain and Shri Faisal Hamid and restore the same to the file of the AO with a direction to examine these three additions afresh and take appropriate decision in accordance with law. - Decided in favour of assessee by way of remand Disallowance of electricity expenses, Municipal Expenses, rent expenses and telephone expenses - Held that:- With regard to the assessee herein, it was stated that it is occupying maximum sp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Addition relating to unexplained stock ₹ 14,83,851/-; b) Disallowance out of electricity expenses ₹ 1,56,734/-; c) Disallowance of Municipal Expenses ₹ 94,285/-; d) Disallowance of rent expenses ₹ 90,000/; and e) Disallowance of telephone expenses ₹ 1,61,044/-. 2. The assessee is a dealer in Electronics goods. A survey action u/s 133A of the Act was conducted in the business premises of the assessee on 2.1.2005. During the course of survey action, excess stock valued at ₹ 14,83,851/- was found. During the course of assessment proceedings, the AO assessed the same as income of the assessee. Besides above, the assessing officer also disallowed a part of expenses claimed by the 2 5512/M/2010 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mises of the assessee by the concerned owners for display. Accordingly, he prayed that these additional evidences may kindly be admitted and examined. 4. We heard the ld. DR and perused the record. We notice that the assessee has been claiming that that the excess stock found during the course of search does not belong to it and the said contentions have been rejected by the tax authorities for want of documentary evidences. Now, the assessee has filed certain additional evidences, in the form of affidavits claimed to have been obtained from the original owners of the stocks, to substantiate its claim. Since the assessee has obtained the affidavits only recently, in the interest of natural justice, we are of the view that the assessee s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 25,000/- and Adam Speakers- SIA 1 pair - ₹ 45,000/-, the assessee furnished a letter dated NIL written by ADAM, Germany, wherein it is stated that the above said two items were given on loan basis to M/s LaKozy Impex and Services. First of all, the said letter does not refer the name of the assessee and secondly the assessee could not explain as to how these items passed through the Customs gate and entered into India. Even though the assessee submitted that the local representative of M/s ADAM Germany has placed the instruments, yet no documentary evidence to support the said claim was furnished. Hence, the contentions urged by the assessee with regard to these two items are also not acceptable. Accordingly we reject the same and ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gly, the ld.AR submitted that the tax authorities are not justified in disallowing 75% of the expenditure claimed. 10. The ld. DR, on the contrary, placed heavy reliance on the orders passed by the lower authorities. 11. We have heard rival contentions on this issue. The assessee has stated that one concern has stopped its business activities, even though its registered address is continued with the same premises. It was further stated that another concern has accounted for certain expenses. With regard to the assessee herein, it was stated that it is occupying maximum space, meaning thereby most of the expenses stated above have been incurred for the purpose of business of the assessee. We notice that the 6 5512/M/2010 tax authorit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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