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TMI Blog2010 (7) TMI 1129X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Revenue against the order of the CIT(A) dated 16.06.2008 by taking the following effective grounds of appeal :- (1) On the facts and the circumstances of the case the Ld. Commissioner of Income Tax (A) has erred in law and facts in deleting an addition made on account of unexplained cash credits u/s 68/69 of ₹ 88,70,748/-. (2) On the facts and circumstances of the case the Ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 68 of the Act. When the matter went before the CIT(A), the CIT(A) deleted the addition by observing as under :- As regards the reasonableness of the quantum of trade credits shown by the appellant, after considering entire facts and circumstances of the case, it emerges that the trade creditors in the balance sheet for the year under consideration are shown for ₹ 1,05,87,585/-. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the material from time to time to be consumed in the business. The assessee has not taken any loan or advance from these parties. As soon the payment becomes due, the payment has been made to each of the party in the succeeding year. In the earlier year also the credit has arisen and has been paid by the assessee. The provisions of section 68 of the Act are not applicable in the case of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd no infirmity in the order of the CIT(A). The CIT(A) has rightly deleted the addition. Thus, ground no.1 stands dismissed. 6. Ground no.2 relates to the deletion of disallowance of ₹ 21,63,785/-. 7. We have heard the rival submissions and carefully considered the same. We noted that the A.O. has made the adhoc disallowance @ 5% of the total expenses claimed by the assessee in his boo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ense or a capital expenditure and no such finding was brought on record and even this is not the case of the Revenue. Under these facts and circumstances, in our opinion, no interference is called for in the order of the CIT(A). Accordingly, we confirm the order of the CIT(A). 8. In the result, appeal field by the Revenue stands dismissed. (Order pronounced in the open Court on 23.07.2010). ..... X X X X Extracts X X X X X X X X Extracts X X X X
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