2014 (6) TMI 746

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....e notice of hearing has been served through Income Tax Department, and the evidence thereof has been filed by the Department with the Tribunal. In these facts, we proceed to decide the present appeals ex parte qua the assessee on merits after hearing the learned DR. ITA No.976/Ahd/2011 (Revenue's appeal): 3. The ground no.1 of the Revenue is as under: "1. The ld.CIT(A) has erred in law and on facts in deleting the addition of Rs.6,12,700/- made by the AO in respect of commission expense." 4. The learned DR submitted that the assessee could not establish the genuineness of the entire commission expenses of Rs.21.43 lakhs. He submitted that the sales have been declined at 29% and the commission expense has increased by about 10% during th....

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....The grounds no.2 and 3 of the Revenue is as under: "2. The ld.CIT(A) has erred in law and on facts in deleting the addition of Rs.2,49,336/- made by the AO on account of cessation of liability u/s.41(1) of the Act, in respect of unproved creditors. 3. The ld.CIT(A) has erred in law and on facts in deleting the disallowance of Rs.98,725 in respect of unproved creditors for expenses." 7. The learned DR has referred to relevant portions of the assessment order in support of the case of the Revenue. He relied on the order of the AO. 8. We have considered submissions of the learned DR and perused the orders of the AO and the CIT(A). We find that the opening and closing balance of the party in question were same and there is no evidence broug....

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....er of the AO. We have considered the submission of the learned DR and perused the orders of the AO and the CIT(A). We find that the expenditure was incurred for organizing meetings on regular intervals of all the marketing personnel situated at different locations to co-ordinate its business of the assessee. Sometime, the persons coming from various cities, towns, districts etc. could not furnish vouchers on time, and therefore, the assessee-company has incurred the said expenditure on cash basis in the year in which the vouchers were received and payments were made, and therefore, the CIT(A) has rightly held that such expenses having crystallized during the year are allowable. The decision of the CIT(A) on this issue is correct and the gro....

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....fidence with regard to the genuineness of the entire conveyance expenses claimed by the assessee. The onus was on the assessee to prove the genuineness of the expenses claimed by it. In these facts of the case, we are of the view that the ends of justice shall be met, if the disallowance out of conveyance expenses is restricted to Rs.1,00,000/- as against the disallowance of Rs.45,000/- sustained by the CIT(A), and accordingly, the ground no.6 of the Revenue is partly allowed. 16. In the result, the appeal of the Revenue is partly allowed. CO No.170/Ahd/2011 (Assessee's CO) 17. There is a delay of 41 days in filing the CO with the Tribunal. The assessee has filed an affidavit explaining the reasons for delay in filing the CO before the T....