9911796707
TMI Blog2016 (4) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... l the expenses claimed by the assessee are allowed. - Decided in favour of assessee Interest earned on NSCs taxed - Held that:- The reasoning given by the ld. CIT (A) is in accordance with law. The NSC along with interest are required to be included in the return of income in the year when it become matured. That should be the year when the income is required to be taken into consideration. Since in the present case the NSCs were due way back on the date of maturity, therefore, the interest earned on the said NSCs are required to be added to the income of the assessee in the current assessment year. However, the amount of investment i.e. ₹ 55,000/-, is not required to be added in the year under consideration. - Decided against ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A.Y. 2003-04 : 1. On the facts and in the circumstances of the case the ld. CIT (A) has grossly erred in upholding the disallowance of ₹ 4289/- (being 1/4th of the original disallowance of ₹ 17,156/- made by the ld. AO) claimed on account of sundry expenses, arbitrarily without verifying the genuineness of the claim. Hence the disallowance so made deserves to be allowed. 2. On the facts and in the circumstances of the case the ld. CIT (A) has grossly erred in not allowing the telescoping, recycling and set off of one income from the other and the action of the ld. CIT (A) in not considering such adjustments deserves to be hold illegal and set off as permissible deserves to be allowed. A.Y. 2004-05 : 1. On the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lculated on imaginary figures and when in fact no interest has been received by the assessee, hence the addition so sustained deserves to be deleted in toto. 2. Since the grounds in all the appeals are common, therefore, we will be deciding the issues by the common order. Ground No. 1 in ITA Nos. 191, 192, 193 194/JP/2013 : 3. The AO has disallowed sundry expenses in respect to the assessment years referred herein above on the ground that Nature of receipts declared does not warrant any expenses for earning the same. The assessee has failed to justify the claim for the same . In view thereof, the same has been disallowed. The year-wise disallowance made by the AO for A.Y. 2002-03 was ₹ 17846/-, for A.Y 2003-04 was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in view the fact that such expenses have also been incurred in earlier A.Ys. it will be fair and reasonable to disallow 1/4th of such expenses to cover up any possible leakage on account of non-verifiability of such expenses or personal element in such expenses. Therefore 1/4th of such expenses in each A.Y. are disallowed as under :- A.Y. Amount of disallowance 1/4th of expenses 2002-03 17846 4461 2003-04 17156 4289 2004-05 12428 3107 2005-06 15184 3796 2006-07 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring the year the assessee has encashed NSCs amounting to ₹ 28,210/-, ₹ 20,150/- and ₹ 24,713/-. The assessee was asked to reply vide order sheet entry dated 18.12.2009 why the interest earned from the NSCs has not been charged to tax in the income computed for the year. The assessee has failed to file reply to the same by 21.12.2009, the date by which he was required to file the reply. In view of the non-compliance, interest earned on NSCs is worked out as under :- Maturity Value Amount of Investment (Tentative) Interest earned ₹ 28,210/- ₹ 20000/- ₹ 8210/- ₹ 20,150/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest income was shown on due basis in relevant A.Ys. In the absence of any documentary evidence which may indicate that such income has genuinely been shown, no fault can be attributed to the finding of the AO. Therefore the action of the AO is confirmed. The ground of appeal is dismissed. 8. Now the assessee is before us. 8.1. The ld. A/R for the assessee has submitted that the amount of ₹ 73,073/- was received by the assessee in the year under consideration. Further, the maturity of the NSC was long over due but for some reason the same was not encashed during the year of maturity. However, the same were encashed in the assessment year. It was further contended that in the year of maturity, the interest element was off ..... X X X X Extracts X X X X X X X X Extracts X X X X
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