TaxTMI 
TaxTMI 
2016 (4) TMI 72
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....of the case the ld. CIT (A) has grossly erred in upholding the disallowance of Rs. 4461/- (being 1/4th of the original disallowance of Rs. 17,846/- made by the ld. AO) claimed on account of sundry expenses, arbitrarily without verifying the genuineness of the claim. Hence the disallowance so made deserves to be allowed. 2. On the facts and in the circumstances of the case the ld. CIT (A) has grossly erred in upholding an amount of Rs. 18,073/- on account of interest on NSC when in fact the same has been duly offered for tax on accrued basis in the relevant year. Hence the said addition deserves to be deleted. 3. On the facts and in the circumstances of the case the ld. CIT (A) has grossly erred in not allowing the telescop....
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....l loans given arbitrarily. 2.1. That the ld. CIT (A) has further erred in sustaining the addition which was calculated on imaginary figures and when in fact no interest has been received by the assessee, hence the addition so sustained deserves to be deleted in toto. A.Y. 2007-08 : 1. On the facts and in the circumstances of the case the ld. CIT (A) has grossly erred in upholding the disallowance of Rs. 4232/- (being 1/4th of the original disallowance of Rs. 16,928/- made by the ld. AO) claimed on account of sundry expenses, arbitrarily without verifying the genuineness of the claim. Hence the disallowance so made deserves to be allowed. 2. On the facts and in the circumstances of the case the ld. CIT (A)....
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....expenses claimed by the assessee under the head sundry expenses. On the other hand the appellant's case is that regular income is being shown and it cannot be said that such expenditure are not required in such type of business. The appellant has also contended that it may not possible for a person to earn income without incurring any expenditure and that such claim has also been made in earlier years against the similar income. On careful consideration of relevant facts it may be noted that undisputably the assessee is carrying out activities of business nature and expenses are to be incurred for carrying out such business. Therefore it may not fair to disallow all such expenses simply by stating that such expenses are not required to be i....
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....e incurred and going by the nature of these expenses, it is very difficult for the assessee to maintain the vouchers of each items of tea, coffee, refreshments, conveyance etc. In view thereof, we do not find any justification to disallow the expenses. In the light of the above, the order of ld. CIT (A) is set aside and all the expenses claimed by the assessee are allowed. Therefore, ground no. 1 in all the appeals are allowed. 6. In respect of Ground No. 2, the AO while deciding this issue against the assessee has held as under :- " 4. It has been noticed from the details filed by the assessee that during the year the assessee has encashed NSCs amounting to Rs. 28,210/-, Rs. 20,150/- and Rs. 24,713/-. The assessee was asked to ....
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....uring the appellant proceedings also though the appellant has filed submission stating that accrued interest on such NSCs was duly shown on due basis in the years (A.Y. 1988-89 to 1997-98). However such submission was not supported by any documentary evidences. In other words even during the appellant proceedings, the appellant has failed to prove that such interest income was shown on due basis in relevant A.Ys. In the absence of any documentary evidence which may indicate that such income has genuinely been shown, no fault can be attributed to the finding of the AO. Therefore the action of the AO is confirmed. The ground of appeal is dismissed." 8. Now the assessee is before us. 8.1. The ld. A/R for the assessee has submitt....