2019 (5) TMI 16

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....ce & brevity. ITA No. 7032/Mum/2017, AY: 2009-10 2.1 The appeal contests the order of Ld. Commissioner of Income-Tax (Appeals)-47, Mumbai, [CIT(A)], Appeal No. CIT(A)-47/AP.12888/16-17 dated 25/09/2107 on following grounds of appeal: - 1. Learned Commissioner of Income Tax (Appeals) erred in confirming the assessment order passed u/s. 143(3) r.w.s 254 of Income Tax Act, 1961 determining total income at Rs. 18,41,901/-. 2. The Learned Commissioner of Income Tax (Appeals) erred in not discussing the Ground No. 1 containing grounds from Item No. 1.1 to 1.4. 3. The Learned Commissioner of Income Tax (Appeals) erred in confirming disallowance of the following business expenditure. Sr. No . Nature of Busi....

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.... by Ld. first appellate authority are under challenge before us: - Sr. No. Nature of Additions Amount (Rs.) 1. Disallowance of expenditure 1,22,015/- 2. Enhancement by Ld. CIT(A) by way of depreciation disallowance 74,080/- 3. Cessation of Liability 15,99,886/- We have carefully perused the rival submissions and perused relevant material on record including documents placed in the paper-book. Our ground wise adjudication follows in succeeding paragraphs. 3.1 During assessment proceedings, it transpired that the assessee debited expenditure of Rs. 1,22,015/- as rent, salaries to staff & misc. expenses. However, in support of the same, the assessee only produced self-made vouchers and could not provid....

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....as follows: - Sr. No. Head Amount (Rs.) 1. New Liabilities incurred during the year 28,280/- 2. Kashinath Tapuriah 13,21,606/- 3. Raghav Corporation 2,50,000/-   Total 15,99,886/- Upon perusal of the details, we find that new liabilities incurred during the year represent audit fees payable to auditors, outstanding staff salary & professional tax. These are current liabilities and nothing on record suggest that these liabilities have ceased to exist. The stand of lower authorities, therefore, could not be sustained to that extent. The amount of Rs. 13,21,606/- represent amount due towards one of the directors of assessee company. The assessee had already filed confirmation of the co....