2021 (3) TMI 992

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....s erred in (i) confirming the disallowance of 23,44,666/- towards sundry creditors made under section 41(1) of the Income Tax Act, 1961 ["Act" in short], (ii) confirming the disallowance of repairs and maintenance expenditure of Rs. 9,45,279/- and confirming the disallowance of business promotion expenses of Rs. 1,25,302/-. 2. Brief facts relating to the disallowance made under section 41(1) of the Act are that while completing the assessment under section 143(3) of the Act, the Assessing Officer made a disallowance of Rs. 60,88,570/- on the ground that no confirmation from the creditors have been received or produced during the course of assessment proceedings. However, during the course of appellate proceedings, the confirmation letter....

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....cluding paper book filed by the assessee. With regard to the claim of expenses towards sundry creditors, the ld. Counsel for the assessee has submitted that the creditors M/s. ARV Meta Chem Industries for Rs. 9,47,014/-, M/s. South Western Engineering (I) Ltd. for Rs. 2,16,168/- and M/s. Jivanlal Corporation for Rs. 1,64,506/- have sent the confirmation reply directly to the Income Tax Officer by registered post and the assessee has the acknowledgement for the same. With regard to the creditors M/s. Aswathy Engineers and Co. for Rs. 7,52,900/- and M/s. Comet Engineering Works for Rs. 1,57,849/-, the ld. Counsel for the assessee has submitted that the assessee could not get the confirmation from the parties due to paucity of time and these p....