2009 (4) TMI 472

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.... disallowance of Rs. 2,00,000 as made by the AO out of wages and job charges. (ii) That the disallowance is without any basis and justification and therefore not justified on facts and in law. 3(i). The learned CIT(A) is not justified on facts and in law in confirming the addition of Rs. 5 lakhs as made by the AO on account of alleged unexplained credit of Rs. 5 lakhs in the capital account of the assessee. (ii) That the addition of Rs. 5 lakhs being credit in the capital account is without any basis and justification and therefore not justified on facts and in law. (iii) That the learned CIT(A) has not appreciated the facts of the case and the explanation of the assessee. 4(i). The learned CIT(A) is not justified on facts an....

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....irmed the disallowance. 3. We have heard the parties and have carefully perused the material on record. In the immediately preceding year, the assessee had been doing the business of Kimam whereas during the year under consideration, the assessee changed its product to scented supari also. This change has led to the higher cost incurred in making goods marketable. The expenses incurred are found fully vouched and payments are also real. The assessing authority laid no basis for making ad hoc disallowance of Rs. 2 lakhs. The disallowance so made being unwarranted and uncalled for, is directed to be deleted. Accordingly, ground in appeal stands allowed. 4. Next ground in appeal relates to the credit of Rs. 5 lakhs in the capital account....

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.... deleted. 7. Next ground in appeal relates to the addition under s. 69 of Rs. 1,32,000 as an alleged payment of stamp duty. 8. Briefly stated the facts of the case are that the assessee had disclosed an advance of Rs. 2 lakhs in the balance sheet annexed with the return of income. It was claimed that the aforesaid stamp duty of Rs. 1,32,000 had been paid by the assessee out of the advance amount as reflected above in the balance sheet which also came to be scrutinized by the assessing authority. Only the accounting adjustment remained to be made. The AO, however, did not appreciate the facts properly and proceeded to treat the amount as unexplained investment of the assessee under s. 69 of the Act. The learned CIT(A) confirmed the add....