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TMI Blog2021 (3) TMI 154X X X X Extracts X X X X X X X X Extracts X X X X ..... of an assessee for the relevant previous year, that can be treated as unexplained cash credit in the absence of proper explanation by the assessee and therefore, the opening balances of preceding previous years cannot be added under section 68 of the Act. In view of the above, the Assessing Officer is directed to verify as to whether the above credit entry appearing in the books of account of the assessee for the relevant previous year or preceding previous years and decide the issue in accordance with law after affording an opportunity of being heard to the assessee. Disallowance of sales promotion expenses - assessee has claimed to have incurred sales promotion and sales promotion material towards purchase of complimentary items like ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ohnson, Addl. CIT ORDER Duvvuru R.L. Reddy, Member (J) This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals) 7, Chennai dated 31.03.2019 relevant to the assessment year 2010-11. In the grounds of appeal, the assessee has challenged the confirmation of addition made under section 68 of the Income Tax Act, 1961 [ Act in short] as well as confirmation of disallowance of sales promotion expenses. 2. Brief facts of the case are that the assessee is an individual and carrying of manufacturing selling Pharmaceuticals items. She filed the return of income for the assessment year 2010-11 on 07.10.2010 declaring total income of ₹ 28,14,174/- The return was processed und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iness operations and therefore, she was not in a position to produce the confirmation. By raising a specific ground as ground No. 5, it was the submission that these credit entries were not recorded in the books of accounts during the relevant assessment year and these entries were carried forward balances from preceding previous years. It was further submission that the assessee's inability to produce the confirmation cannot deem the creditors to be not genuine, when all the other details to prove the genuineness of the creditors were duly submitted and prayed for deleting the addition. On the other hand, the ld. DR supported the orders of authorities below. 5. We have heard both the sides, perused the materials available on record ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 19, the Bangalore Benches of the Tribunal was of the opinion that under section 68 of the Act, it is only the credit entry appearing in the books of account of an assessee for the relevant previous year, that can be treated as unexplained cash credit in the absence of proper explanation by the assessee and therefore, the opening balances of preceding previous years cannot be added under section 68 of the Act. In view of the above, the Assessing Officer is directed to verify as to whether the above credit entry appearing in the books of account of the assessee for the relevant previous year or preceding previous years and decide the issue in accordance with law after affording an opportunity of being heard to the assessee. 6. The next gro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ads, etc., against which the AR of the assessee has submitted bills only for ₹ 46,61,249/- and for the balance amount of ₹ 22,64,048/- the AR of the assessee could not file any bills/vouchers. In the appellate order, the ld. CIT(A) has not given any findings on this ground. Assuming jurisdiction and after hearing both the parties, we proceeded to decide the ground on merits. For allowance of any expenditure, proper bills and vouchers are required for verification. In this case, in the absence of any bills/vouchers produced before the Assessing Officer or any higher appellate authorities for the amount of ₹ 22,64,048/- incurred for sales promotion and sales promotion materials, the said amount is liable to be disallowed. Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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