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2016 (3) TMI 1089 - ITAT CHANDIGARHAddition out of agricultural income - Held that:- We have accepted the earning of agricultural income @ ₹ 15,000/- per acre and accepted the claim of assessee in a sum of ₹ 21,30,000/-. In the Assessment year under appeal, the AO has mentioned that assessee has declared agricultural income of ₹ 21,30,000/- but in the computation it was shown at ₹ 21,25,607/-. Therefore following the orders for preceding Assessment year 2009-10 and 2010-11 we delete the entire addition sustained by the Ld. CIT(A) in the sum of ₹ 7,05,607/- thus the C.O. of the assessee is allowed and department appeal is dismissed. - Decided against revenue Addition on account of GP rate - Held that:- No specific defects have been pointed out in maintenance of books of account by the assessee. The assessee has sufficient reasons for fall in gross profit i.e; change of the location of the vends allotted by Excise Department in the year under consideration as well as in preceding Assessment year. The assessee claimed that since location of the liquor shop have been changed year to year and there was increase in the license fee therefore there cannot be comparison of the profit from the earlier years. The reasons given by the assessee have not been rebutted by the AO in his comments before the Ld. CIT(A). No inflation of purchases or suppression of sales were found. AO has not pointed out if any expenses have been inflated by the assessee. Mere low gross profit is not a ground to reject the books of account of the assessee. The submission of the assessee since have not been rebutted by AO at the appellate stage and no specific defects have been pointed out in maintenance of the books of account, therefore whole addition was unjustified which was correctly deleted by the Ld. CIT(A)- Decided against revenue Addition on account of additional license fee - Held that:- The certificate by Excise And Taxation Officer (Excise) Jalandhar and Gurdaspur to prove that additional license fee has been paid by the assessee as directed by the Excise And Taxation Department. Since the additional license fee is paid as per direction of the State Government for running of the business, therefore, the amount was spent wholly and exclusively for the purpose of business and as such allowable deduction.- Decided against revenue Addition on account of disallowance of interest - Held that:- If there are interest free funds available a presumption would arise that investment would be out of the interest free funds generated or available with the company, if the interest free funds were sufficient to meet the investments - Decided against revenue Addition on account of excessive freight charges - Held that:- Assessee has given reasons for increase in the expenditure due to increase in the purchases therefore, addition was wholly unjustified which have been correctly deleted by the Ld. CIT(A)- Decided against revenue. Addition on account of unexplained cash found during the search - Held that:- The assessee explained the source of the cash found during the course of search operation. The AO has not rebutted the claim of the assessee in his comments filed at the appellate stage. Therefore, Ld. CIT(A) on proper appreciation of facts and materials on record correctly deleted the addition.- Decided against revenue. Addition on account of excessive jewellery found - Held that:- The assessee produce copies of the WTR before authorities below as well as in the paper book filed before us to prove that assessee and his family members possesses more jewellery as against the jewellery found during the course of search. Since assessee had already declared more jewellery as against the jewellery found during the course of search in their WTR, therefore, the same could not be treated as un-explained.- Decided against revenue
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