9911796707
TMI Blog2018 (8) TMI 1718X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax Act, 1961 (hereinafter 'the Act'). 2. The first issue in this appeal of Revenue is against the order of CIT(A) deleting the addition made by the AO on purchases disallowed under section 69 of the Act. The Revenue has also raised the issue that the CIT(A) was not correct in admitting additional evidences and in violation of Rule 46A of the Income Tax Rules, 1962. For this Revenue has raised the following two grounds: - "1. Whether on facts and in the circumstances of the case and in Law, the Ld. CIT(A) erred in deleting the addition made by the Assessing Officer u/s 69 of IT Act, without appreciating the fact that assessee failed to discharge its onus to establish the genuineness of the purchases and identity of the parties fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unexplained. Aggrieved, assessee preferred the appeal before CIT(A) and the CIT(A) allowed the claim of the assessee by observing as under: - "a) Copy of Purchase invoices as well as Delivery challans were produced for verification vide AR's letter dt. 29-1-2015 b) Copy of ledger account of the said supplier reflecting purchases and payments thereof by account payee cheques in subsequent year. c) Copy of Bank statement reflecting each such payment to the supplier. d) Quantitative statement of all items purchased from such supplier and corresponding sales thereof and details of unsold stock and value thereof. e) Copy of computer generated statement of account of the assessee in the books of the said supplier along with rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tors and debtors and labour charges paid. The assessee also filed coy of bank account statement making payment to Depuy Medical Pvt. Ltd. and also computer generated ledger account of the assessee in the books of accounts Depuy Medical Pvt. Ltd. giving invoice entries of sale made to assessee. The assessee has also filed complete details in its paper book consisting of pages 1 to 125. The assessee has also enclosed the closing stock position as on 31. 03. 2012 in respect of purchase affected by assessee from Depuy Medical Pvt. Ltd. during the month of February and March 2012. The relevant details are enclosed at pages 23 to 49 of assessee's paper book. Further vide letter dated 29. 01. 2015, the assessee has filed statement of account of as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... htly deleted the addition and we confirm the same. This issue of Revenue's appeal is dismissed. 7. The two inter-connected issues raised by assessee in its appeal is as regards to the order of CIT(A) restricting the disallowance at 10% on account of staff welfare and salary and incentive expenses and sundry labour charges amounting to Rs. 8, 70, 958/- and Rs. 5, 92, 221/- respectively. For this assessee has raised the following ground No. 1 and 2 as under:- "1. The learned CIT(A) erred in confirming disallowance of Rs. 8, 70, 958/- on ad hoc basis (c) 10% of Rs. 87, 09, 589/- being Staff Welfare and Salary & Incentive expenses on the on the ground and after considering profit declared by the assessee without appreciating the fact that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... works out to Rs. 21, 77, 397, 25. Considering the facts on record and also the profits declared by the appellant, the disallowance is restricted to 10% which works out to Rs. 8, 70, 958/- and the balance amount of Rs. 13, 06, 448/- is deleted. 7. 3...........................The Further the DCIT has disallowed @ 25% of total amount even though has mentioned in his order that 20% of such expenses may be disallowed. The AO has disallowed 25% out of Rs. 59, 22, 211/- under Sundry labour expenses for want of details. Considering the facts on record and profits declared by the appellant company, the disallowance is restricted to 10% which works out to Rs. 5, 92, 221/- and for the balance of Rs. 8, 88, 331/-, the appellant gets relief. Hence ..... X X X X Extracts X X X X X X X X Extracts X X X X
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