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TMI Blog2018 (5) TMI 2170X X X X Extracts X X X X X X X X Extracts X X X X ..... more opportunity to prove the cash credits. Accordingly we set aside the order passed by CIT(A) on this issue and restore the same to the file of the AO for examining it afresh. Disallowance of Sales promotion expenses for non-deduction of TDS - DR submitted that the amount cannot be allowed even if TDS was deducted, if the expenditure is hit by Explanation to sec. 37(1) - HELD THAT:- We find merit in the submissions of Ld D.R. With regard to the disallowance we notice that the AO did not furnish the details of those expenses and did not also mention as to how those expenses were hit by the Explanation given u/s 37(1) of the Act. We notice that the AO has made only general observations. We notice that the CIT(A) has confirmed the disa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earlier years, the AO disallowed the claim. - AR submitted that all the above said amount has been offered as income in the earlier years and in support of the same, he invited our attention to the copies of ledger accounts placed in the paper book, accordingly he prayed for an opportunity to demonstrate the same before the AO - HELD THAT:- Having regard to the submissions made by Ld A.R, we are of the view that there is merit in his submissions. Accordingly we set aside the order passed by Ld CIT(A) on this issue and restore the same to the file of the AO for examining this issue afresh. AO may take appropriate decision in accordance with law after examining the evidences that may be furnished by the assessee. Preliminary expenses u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Ld A.R submitted that the assessee had received share capital share premium from a company named M/s Aadya Motor Car Co. P Ltd. The assessee furnished all the details to prove the cash credit. The share subscriber also confirmed the same by duly responding to the notice issued by the AO u/s 133(6) of the Act. The AO noticed that the share subscriber has accounted the same as deposits in the books of account and not as share investment . The AO called for explanations in this regard at the fag end of proceedings and hence the assessee could not give reply. The Ld CIT(A) also confirmed the same. He submitted that the source of money was doubted by tax authorities. Accordingly he submitted that the assessee may be given an opportunity t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee claimed that it has deducted TDS. The Ld A.R submitted that the assessee has deducted tax at source in this year also, which facts need verification. 6. The Ld D.R submitted that the amount of Rs.6.57 lakhs cannot be allowed even if TDS was deducted, if the expenditure is hit by Explanation to sec. 37(1) of the Act. We find merit in the submissions of Ld D.R. With regard to the disallowance of Rs.6.57 lakhs is concerned, we notice that the AO did not furnish the details of those expenses and did not also mention as to how those expenses were hit by the Explanation given u/s 37(1) of the Act. We notice that the AO has made only general observations. We notice that the Ld CIT(A) has confirmed the disallowance with general observ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the above said payment, yet we are of the view that it is the duty of the assessee to explain the nature of services offered by Shri Sardar Singh Kattar Singh towards the payment of Rs.39.00 lakhs and genuineness of expenses. Accordingly, in the interest of natural justice, we restore this issue to the file of the AO for examining this issue afresh and accordingly the order passed by Ld CIT(A) is set aside. The AO may take appropriate decision in accordance with law after examining the evidences that may be furnished by the assessee. 10. The next issue relates to the disallowance of Sundry Balances of Rs.23.87 lakhs written off by the assessee. Since the assessee did not prove that the above said amount was offered as income in the ea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a of the Ld A.R is that the expenditure related to Training and Development and the said claim has not been examined by the AO. We find merit in the said argument. Hence this aspect requires examination at the end of AO. The Ld D.R pointed out the observations of Ld CIT(A) that the Training and development expenses relate to FY 2007-08 also and submitted that if it is not related to the year under consideration, the same should be disallowed. There is merit in this contention of Ld D.R also. Accordingly we set aside the order passed by Ld CIT(A) on this issue and restore the same to the file of the AO for examining this issue afresh. 14. We shall now take up the appeal filed for AY 2012-13. The first issue relate to the disallowance of R ..... X X X X Extracts X X X X X X X X Extracts X X X X
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