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TMI Blog2025 (3) TMI 403X X X X Extracts X X X X X X X X Extracts X X X X ..... the SBNs deposited during demonetization period. In such a scenario, without the AO able to disprove the explanation of the assessee or contradict the assessee's claim by adducing any evidence, we are of the view that assessee has discharged its burden by providing relevant evidences to prove the nature and source of SBNs. Therefore, CIT(A) has rightly deleted the addition made by the AO u/s.68 - Decided against revenue. Disallowance of expenses in respect of reimbursement expenses - CIT(A) who deleted the same by taking note of the fact that the assessee in support of the said expenses had filed ledger extract explaining that expenses was incurred as "reimbursement follow up expenses"; and "travel expenses reimbursement" - HELD THAT:- Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch action doesn't require any interference, so we dismiss this ground of Revenue. X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to delete the same. 5. Aggrieved, the Revenue is in appeal before this Tribunal. 6. We have heard both the parties and perused the material available on record. We note that the assessee company is mainly a logistic company; and it also render its services as a Customs Clearing Agent (CCA). The nature of the business requires regular expenses to be incurred for loading & unloading, and such expenses are disbursed by paying it in cash; and being a Customs Clearing Agent, it also had to reimburse the expenses of its employees who will be incurring expenses on behalf of its clients, which assessee reimburses to them. In order to meet these expenses, the assessee therefore had to withdraw regularly cash and brought to our notice that the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ok to cover Rs. 61,17,000/- [i.e. the SBNs deposited during demonetization period]. However, despite the availability of cash on hand in the cash book of the assessee on or before the date of its deposits in its bank account, the AO has brushed aside this relevant fact merely because the assessee had deposited the SBNs on different dates/occasions, which action can't be countenanced. Merely because, the assessee deposited the SBNs on different dates, the AO can't draw adverse inference against the assessee because, at that time (demonetization period) there was huge rush to the bank and depositing small amount can't be faulted with, when assessee had shown to have the cash in hand which was withdrawn by the assessee from its own bank accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... However, according to him, the assessee couldn't explain the nature of expenses claimed as reimbursement expenses, and therefore, the AO disallowed it and added Rs. 1,07,24,039/-. 8. Aggrieved, the assessee preferred an appeal before the Ld.CIT(A) who deleted the same by taking note of the fact that the assessee in support of the said expenses had filed ledger extract explaining that expenses to the tune of Rs. 74,08,064/- was incurred as "reimbursement follow up expenses"; and Rs. 33,15,975/- was on account of "travel expenses reimbursement". In this regard, the Ld.CIT(A) appreciated that other than logistic services, the assessee being a Customs House Agent (CMA) [license holder to clear cargo all over the country] had to incur expenses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ., which expenses has been accepted by the AO, but disallowed the expenses reimbursed by the assessee to its employees on account of it being spend on behalf of their clients to the tune of Rs. Rs. 74,08,064/- as well as expenses reimbursed to the employees for travel expenses, etc., to the tune of Rs. 33,15,975/- [totaling Rs. Rs. 1,07,24,039/-] merely on suspicion, conjectures and surmises which action of the AO can't be accepted, in the light of the fact that the assessee has filed relevant material, ledger extracts to prove the ibid expenses which relevant evidences have been brushed aside by the AO without pointing out any infirmity in the entries made in the ledger extracts. It is further noted that the assessee's accounts are audited ..... X X X X Extracts X X X X X X X X Extracts X X X X
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