2013 (4) TMI 420

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....hri K.K.Gupta, Accountant Member. This appeal by the Revenue raises the following grounds. "1. On the facts and in the circumstances of the case, the Ld. CIT(A) is not justified in deleting the addition of Rs.2,00,000/- made by the AO on account of unexplained expenditure by the assessee. 2. On the facts and in the circumstances of the case, the Ld. CIT(A) is not justified in deleting the....

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....the facts in detail by observing the following for both the grounds raised by the Revenue before us. "2.1. The appellant explains that the loan of Rs.1 lac was given to MIs. Pal Regency (P) Ltd. by the appellant from his capital account in M/s. Pal Constructions on dt.1.9.2006 by cheque No.816121 on Andhra Bank. This loan was repaid by M/s. Pal Regency (P) Ltd. in the subsequent financial year ....

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....gly, the books of M/S. Pal Constructions show liability of Rs.1 lac against MIs. Pal Regency (P) Ltd. and also show asset of Rs.1 lac through drawings account. The bank ledger in the books of M/s. Pal Regency (P) Ltd. shows that an amount of Rs.1 lac paid to M/s. Pal Constructions by cheque No.830072 on dt.12.10.2007 towards a refund of loan. Accordingly, there is no doubt that the loan given earl....

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....re receipts and not expenditure and such receipts have been disclosed in the P&L account and income offered to tax. The copies of the P&L accounts are also furnished. The P&L accounts which has been audited shows that the amount of Rs.16,62,705/- has been credited to the P&L account as bills received, hence has been offered to tax as income. The said old bills did not relate to expenditure. Accord....