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TMI Blog2019 (3) TMI 1966X X X X Extracts X X X X X X X X Extracts X X X X ..... ere with the reasoned findings of Commissioner of Income Tax (Appeals). The same are upheld, accordingly and the appeal of Revenue is dismissed being devoid of any merit. - Decided against revenue. - ITA No. 201/NAG/2014 And CO No. 24/NAG/2017 - - - Dated:- 29-3-2019 - Shri D. Karunakara Rao, AM And Shri Vikas Awasthy, JM For the Assessee : Shri Rajesh Loya. For the Revenue : Shri U.U. Kasar. ORDER PER VIKAS AWASTHY, JM : This appeal by the Revenue is directed against the order of Commissioner of Income Tax (Appeals)-III, Nagpur dated 21-01-2014 for assessment year 2010-11. The assessee has filed cross objections in support of the findings of Commissioner of Income Tax (Appeals). 2. The Revenue in appeal h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore the Commissioner of Income Tax (Appeals). The Commissioner of Income Tax (Appeals) after considering the facts and documents on record deleted the entire addition in respect of disallowance of expenditure. Hence, the present appeal by the Revenue. 4. Shri Rajesh Loya appearing on behalf of the assessee submitted that disallowance of expenditures were made by the Assessing Officer merely on surmises and conjectures. The Assessing Officer failed to take cognizance of various documentary evidences produced by the assessee. The Commissioner of Income Tax (Appeals) after appreciating the documents on record and facts of the case has deleted the entire addition. The ld. AR further contended that the books of account of assessee are subjec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rther held that it is reasonable to allow only those expenses which are genuinely incurred to carry out such paper transactions. Thus the AO agrees that the expenses are allowable. However, he failed to bring on record any infirmity in the individual head of expenditure which had been considered for disallowance. I find that the assessee has paid interest to banks on the LC transaction and finance facility. Similarly, the bank charges and commission have been paid for LC discounting. The interest paid to others is also for securing funds for the purpose of business. It is nowhere established by the AD that the funds have been utilised for personal purposes or non business activity. The genuineness of the expenditure cannot be doubted as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iny in earlier occasion as well. Proceedings u/s.153A were initiated for A.Y.2004-05 in pursuance of search conducted earlier on 24-12-2003 and the assessment order was passed u/s.143(3) r.w.s. 153A on 31-03-2006. The expenditure were very much allowed and there was no edition made by the AO of this nature. Further, on the similar facts, the CIT(A)-I vide his appellate order dated 11/03/2013 in the case of Shri Krishna Gupta for A.Y. 2008-09 vide appeal number CIT(A)-1I545/2011-12 has held that the expenditure is directly relatable and without which the appellant would not have earned income and accordingly has allowed the appeal. Considering the aforesaid facts, I hold that the expenditure claimed by the assessee are incurred as well ..... X X X X Extracts X X X X X X X X Extracts X X X X
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