2014 (1) TMI 1716

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....nst the additional income of Rs. 50,00,000/- declared during the course of survey without appreciating that the expenses of Rs. 17,58,462/- are allowable business expenses representing expenses incurred after date of survey and expenses accounted after date of survey and same had been allowed in earlier as well as later years and the statement of the director taken on oath during the course of survey was wrongly interpreted by the learned Assessing Officer and hence the business expenses of Rs. 17,58,462/- may be allowed to be deducted for computing the Business profits. 2) Without prejudice to above, the learned CIT(A) erred in not adjudicating the alternate submission of the Assessee that the deduction of Business Expenses of Rs.....

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....ved at after accounting for all the expenses which had remained to be entered into books of account as on the date of survey. He held that the expenses accounted for in the books of account after the date of survey thus were clearly not allowable to the assessee. On appeal, the learned CIT(A) confirmed this disallowance made by the AO for the same reasons as given by the AO. He also held that the provision for expenses made by the assessee in the books of account on account of interest etc. was nothing but accounting Jugglery made with an intention to reduce the taxable income offered during the course of survey. Agrieved by the order of learned CIT(A), the assessee has referred this appeal before the Tribunal. 3. We have heard the argum....

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....vance tax on as 15.03.2007. A copy of Profit & Loss Account of the assessee for the year under consideration is placed at page no. 72 of the paper-book which shows that the income of Rs. 15,00,000/- surrendered by the assessee during the course of separately declared as income and the entire routine expenses including the expenses in question incurred during the post survey period were debited the profit and loss account. In our opinion, all these facts and figures appearing in the relevant financial statements clearly show that the amount expenses of Rs. 8,17,7462/- were claimed by the assessee as regular business expenses incurred during the post survey period against regular business income which resulted in reduction of its regular busi....