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TMI Blog2017 (10) TMI 825X X X X Extracts X X X X X X X X Extracts X X X X ..... ”. Hence, the ld. CIT (A) has rightly deleted the addition by treating the same as revenue expenditure. Expenditure on Diwali gifts and sweets given to the outsourced Doctors - Held that:- AR has failed to bring on record any such documents to prove the hiring of services of the Doctors nor it is proved on record if the Doctors to whom the gifts are given are on the roll of the assessee or are rendering services since long. No doubt confirmation from the Doctors to whom the gifts are claimed to have been given by the assessee cannot be obtained but the assessee is required to bring on record the evidence to prove that such and such services have been rendered by the said Doctors. So, we are of the considered view that this issue is required to be remanded back to the AO to decide afresh after conducting verification of the fact that such and such services were actually rendered by the said Doctors and their services were necessary to run the day-to-day business of the assessee. Addition on account of bad debts - no efforts for recovery of such bad debts have been made by the assessee - Held that:- When the assessee has proved on record that the debts incurred were on revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mand report from the AO. So, in these circumstances, we remand this issue back to the file of ld. CIT (A) to decide afresh after providing an opportunity of being heard to the parties. Consequently, ground is determined in favour of the Revenue for statistical purposes. Addition on account of sundry creditors - no sundry creditors have been shown in the balance sheet - Assessee submitted that the list of sundry creditors is there at pages 88 & 89 of the paper book and the amount of ₹ 7,00,000/- has been claimed against Shri Sanjiv Gupta mentioned at Sl.No.6 of the sundry creditors - Held that:- We we are of the considered view that this fact is required to be verified by the AO in the light of the balance sheet. So, this issue is also remanded back to the AO to decide afresh after providing an opportunity of being heard to the parties. Consequently, ground is determined in favour of the Revenue for statistical purposes. - ITA No.6188/Del./2014 - - - Dated:- 13-10-2017 - SHRI N.K. SAINI, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER For The ASSESSEE : Shri V.P. Bansal, CA For The REVENUE : Shri Deepak Garg, Senior DR ORDER PER KULDIP SI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ld. CIT (A) has erred in deleting the addition of ₹ 1,24,44,143/- made by the AO on account of bogus purchases ignoring the facts of the case that the parties from whom the purchases were made were found not existing and the assessee failed to establish the identity of persons from whom the purchases were made by the assessee. ( 8) In the facts and the circumstances of the case the ld. CIT(A) erred in deleting the addition of ₹ 1,24,44,143/- made by the AO on account of bogus purchases made by the AO on the basis of letter produced by the assessee without referring the same to the AO for its verification. ( 9) In the facts and circumstances, the Ld. CIT(A) erred in deleting the addition of ₹ 10,07,441/- out of ₹ 16,43,824/- made by the A.O. on account of consultancy charges on the basis of a letter produced by the assessee without referring to the A.O. for its verification. ( 10) In the facts and circumstances, the Ld. CIT(A) erred in deleting the addition of ₹ 7,00,000/-- made by the A.O. on account of sundry creditors on the basis of a letter produced by the assessee without referring to the A.O. for its verificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. Authorized Representatives of the parties to the appeal, gone through the documents relied upon and orders passed by the revenue authorities below in the light of the facts and circumstances of the case. GROUND NO.1 5. When it is not in dispute that the expenditure of ₹ 65,516/- has been incurred by assessee on repair of room cabinet, qua which all the necessary documents have been perused by the AO, we are of the considered view that the ld. CIT (A) has rightly taken the view that no new asset has been created of enduring benefit and as such, the expenditure is in the nature of revenue expenditure. So, we confirm the findings returned by ld. CIT (A). Consequently, Ground no.1 is determined against the Revenue. GROUND NO.2 6. Assessee claimed expenditure of ₹ 1,05,000/- incurred on account of processing fees paid to IDBI Bank Ltd. for increase in working capital overdraft facilities as revenue expenditure. When admittedly there is no capital creation with the loan facilities availed of by the assessee, the working capital overdraft facility cannot be kept under the category of capital expenses, rather working capital overdraft facility is oft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ous losses. When the assessee has proved on record that services of pharmacy and path lab were outsourced and remaining items were brought as and when required, there used to be no stock as consumables on physical verification. So, again, we find no ground to interfere with the findings returned by ld. CIT (A). Hence, ground no.5 is also determined against the Revenue. GROUND NO.6 10. AO disallowed an amount of ₹ 2,52,000/- paid to Jagmohan Garg (HUF) on account of rent paid. Since ld. CIT (A) deleted the addition after verifying the fact that the payment has been made as per Agreement, available at pages 63 to 65 and 66 to 77 of the paper book, and the fact that the payment has been made through banking channel to the landlords directly and as such, there was no need to confirm these facts from landlords. Again, we find no ground to interfere in the findings returned by ld. CIT (A), hence ground no.6 is determined against the Revenue. GROUND NOS.7 8 11. AO disallowed the amount of ₹ 1,24,44,143/- on account of purchases of consumables for lack of confirmation made by the parties from whom such consumables were purchased even after issuance of no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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