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TMI Blog2022 (10) TMI 719X X X X Extracts X X X X X X X X Extracts X X X X ..... ccounts of the assessee was audited and while disallowing the expenses AO has not pointed any expense where the expenses were not vouched or were for non business purpose. Revenue has not pointed to any fallacy in the findings of CIT(A). In such a situation, we find no reason to interfere with the order of CIT(A) and thus the ground of Revenue is dismissed. - ITA No. 9435/Del/2019 And CO No. 26/Del/2020 (Arising out of ITA No.9435/Del/2019) - - - Dated:- 14-10-2022 - SH. ANIL CHATURVEDI, ACCOUNTANT MEMBER AND SH. ANUBHAV SHARMA , JUDICIAL MEMBER Assessee by : Shri Manoj Sabharwal, Adv. Revenue by : Shri Abhishek Kumar, Sr. D.R. ORDER PER ANIL CHATURVEDI , AM : This appeal filed by the Revenue along with the Cro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any of the above grounds of appeal at or before the time of hearing of the appeal. 6. During the course of assessment proceedings and on perusing the audited Balance Sheet of the assessee as on 31.03.2016, AO noticed that assessee had shown sundry creditors amounting to Rs.1,99,22,306/-. The assessee was asked to establish the genuineness of the sundry creditors. AO noted that assessee did not reply to any of the notices or file the required details called for by the AO. He therefore, held that genuineness of the sundry creditors to be unsubstantiated and un-established and accordingly, disallowed 25% of the creditors u/s 41(1)/37 of the Act and accordingly, made additions of Rs.49,80,576/-. 7. AO on perusing the audited Balance S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect to the disallowance of other expenses, CIT(A) has given a finding at para 8 of his order that AO has not been able to establish as to which of the expenses were of personal in nature, the quantum and basis of the personal element. He has further noted that AO has also not established or spelt out the expenses which were not vouched completely more so when the assessee s account was duly audited. He, thereafter, by placing reliance on the decision rendered by Hon ble Delhi High Court in the case of Friends Clearing Agency (P) Ltd. vs. CIT 332 ITR 269 deleted the ad-hoc disallowance of expenses. Aggrieved by the order of CIT(A), Revenue is now before us. 9. Before us, Learned DR supported the order of AO. 10. Learned AR on the other ..... X X X X Extracts X X X X X X X X Extracts X X X X
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