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TMI Blog2018 (3) TMI 1158X X X X Extracts X X X X X X X X Extracts X X X X ..... duced was through the bank account of the assessee. Copy of the written submissions is filed in the paper book. No finding have been given by the authorities below and even the assessee has not referred to the bank statement from which the amount is transferred. The orders of the authorities below are set aside and the matter is restored to the file of the A.O. with a direction to re-decide this ground on merit, by giving reasonable, sufficient opportunity of being heard to the assessee. Assessee is directed to file copy of the bank account before A.O, through which, amount is introduced as capital, in the account of the assessee. This ground is allowed for statistical purposes. Disallowance of 10% out of wages claimed and Diwali expenses - Held that:- Explanation of assessee should not have been disbelieved by the A.O. Further, Diwali expenses are paid to the employees as bonus, which is an undisputed fact. Therefore, merely because the turnover was lesser as compared to the earlier year, is no ground to reject the explanation of assessee. Assessee rightly contended that it is an adhoc addition, without pointing-out, as to which, of the expenses are not admissible expenses and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y Hari Developers (P) Ltd. The A.O. found that the impugned amount was shown as sundry creditor in the name of Hari Developers (P) Ltd. The assessee was asked to prove the genuineness of the credit, but, the assessee could not file the confirmation from the creditor. The A.O. obtained information from their books of account for the assessment year under consideration. in which, the account of the assessee was squared-up for having no balance outstanding. The assessee was confronted with the same. The assessee submitted before the A.O. that the party Hari Developers (P) Ltd., was disputed and was not ready to reconcile the account. However, the amount received from it was not due towards them for services provided, but, receive as advance to provide service or refundable on demand. The A.O. however, did not accept the contention of the assessee on merit and made the addition. 4.1. The assessee submitted before Ld. CIT(A) that amount was outstanding against this party at the end of the financial year. The assessee filed ledger account of this party for A.Y. 2010-2011 to show that advance received from this party have been booked as income in A.Y. 2010-2011, on which, assessment un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led in the paper book. No finding have been given by the authorities below and even the assessee has not referred to the bank statement from which the amount is transferred. Therefore, the orders of the authorities below are set aside and the matter is restored to the file of the A.O. with a direction to re-decide this ground on merit, by giving reasonable, sufficient opportunity of being heard to the assessee. Assessee is directed to file copy of the bank account before A.O, through which, amount is introduced as capital, in the account of the assessee. This ground is allowed for statistical purposes. ISSUE No. 3 : 8. The assessee challenged the disallowance of 10% out of wages claimed and Diwali expenses. The A.O. noted that assessee has claimed wages of ₹ 91,99,353/- in the P L A/c. Assessee submitted salary chart. The assessee was asked to furnish name and addresses of the persons to whom wages have been shown payable. The assessee was asked to produce the persons from Sl.No. 8 to 27 in the list of October, 2007 to whom wages have been paid. The assessee submitted that wages are paid to various workers engaged in providing services to the parties. Copy of the payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arried-out by EPF and ESI Department at the same time to verify the applicability of EPF and ESI to the employees. Therefore, explanation of assessee should not have been disbelieved by the A.O. Further, Diwali expenses are paid to the employees as bonus, which is an undisputed fact. Therefore, merely because the turnover was lesser as compared to the earlier year, is no ground to reject the explanation of assessee. Learned Counsel for the Assessee, therefore, rightly contended that it is an adhoc addition, without pointing-out, as to which, of the expenses are not admissible expenses and are not related wholly and exclusively to the business of the assessee. Therefore, there is no justification to sustain the addition. I, accordingly, set aside the orders of the authorities below and delete the entire addition made on account of disallowance out of Wages and Diwali expenses. This ground of assessee is allowed. ISSUE NO.4 : 10. The A.O. made addition of ₹ 2,00,159/- as undisclosed receipt. The A.O. has made this addition by mentioning of 04 parties from whom information have been collected and assessee has not disclosed receipts from these parties. The names are mentioned ..... X X X X Extracts X X X X X X X X Extracts X X X X
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