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TMI Blog2018 (3) TMI 522X X X X Extracts X X X X X X X X Extracts X X X X ..... tantiate the disallowance of salaries at 30% and disallowance of entire expenditure in respect of staff bonus and accounting charges. No other material was placed on record before us to controvert the finding of Ld.CIT(A). Therefore, we do not find any reason to interfere with the order of the Ld.CIT(A) and accordingly ground of revenue’s appeal are dismissed. - I.T.A. No. 287/Viz/2015 - - - Dated:- 9-3-2018 - Shri V. Durga Rao, Judicial Member And Shri D. S. Sunder Singh, Accountant Member Appellant by : ShriM.R.Bangari, DR Respondent by : Shri G.V.N.Hari, AR ORDER Per D. S. Sunder Singh, Accountant Member This appeal is filed by the revenue against the order of the Commissioner of Income-Tax (Appeals) [CIT(A)]-1, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the 30% disallowed by the A.O, considering the fact that the expenditure claimed against salaries was unreasonably high. 3. The Ld. CIT(A) erred in disallowing only 10% of the expenditure claimed towards staff bonus paid of ₹ 1,80,000/- as against the whole amount being disallowed by the A.O, considering the fact that the assessee has failed to produce any bills or vouchers in support of his claim. 4. The Ld. CIT(A) erred in disallowing only 15% of the expenditure claimed towards accounting charges of ₹ 36,000/-, as Against the total amount being disallowed by the A.O, considering the fact that the assessee has failed to produce any bills or vouchers in support of his claim. 5. The Ld. CIT(A) erred in holding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowed 30% of the salaries paid without assigning any reason. Similarly, in respect of bonus and accounting charges entire amount was disallowed by the AO. Ld.CIT has considered the issue very carefully and held that disallowance of 10% of expenditure in respect of salaries and bonus and 15% of expenditure in respect of accounting charges would meet the ends of justice. For ready reference, we extract relevant paragraphs of the order of the Ld.CIT which reads as under : 7.2 During the appeal hearing, the AR represented that the expenditure incurred towards salaries, staff bonus and accounting charges were routine expenses and considering the turnover of the assessee, the expenses claimed cannot be said to be high. The assessee file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Visakhapatnam and had made cash deposits on various dates to the tune of ₹ 53,42,300/- in the bank account. The assessee explained the cash deposits of ₹ 10 lakhs which was received from Sri V. Kondappa Naidu by way of account payee cheque on 28.04.2010 bearing cheque No.46608 deposited in his SB Account No.017300100023562. Therefore, the AO made the balance amount of ₹ 43,42,300/- as unexplained cash credits u/s 68 of I.T.Act after excluding the sum of ₹ 10.00 lacs. 13. Aggrieved by the order of the AO, the assessee went on appeal before the CIT(A) and argued that the assessee had made cash withdrawals from his SB account which were used for cash advances to the staff members as and when required. The Ld.CIT(A) c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... revenue before us indicating that the cash withdrawals were used for any other purpose either for expenditure or for any other investments. In the absence of any other evidence as observed by the Ld.CIT(A), the possibility of cash withdrawals forming source for the subsequent cash credits cannot be ruled out. The Ld. CIT(A) observed from the bank statement that the assessee has withdrawn the cash and redeposited the same in the bank account. The decision relied upon by the revenue is distinguishable on facts in respect of inconsistency with not only explanation of amounts being used for charitable purposes but also the fact of same being withdrawn in cash and also by cheques ostensibly for personal purposes on recurring basis. The Hon ble I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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