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2013 (12) TMI 359 - ITAT HYDERABADDisallowance of expenditure on account of double claim of expenses The assessee is the managing director of Hyderabad House P. Ltd. - Also having his own catering business under the name and style of MBA Catering Services - Search and seizure operations under section 132 of the Act were conducted on December 12, 2007 in the case of Hyderabad House P. Ltd. and at the residential premises of the assessee Held that:- The authorities failed to prove with sufficient evidence The assessee has not claimed the same expenses twice The expenses claimed by the assessee have been incurred for the purpose of MBA Catering Services Decided against Revenue. Disallowance of expenses @ 8 percent The assessee could not produce bills and vouchers for most of the expenses incurred in cash - Held that:- Following GSP Infratech Development Ltd. [2013 (11) TMI 374 - ITAT HYDERABAD] - The disallowance at 5 per cent. of cash expenses other than statutory payments and payments to the Government authorities and the amount subjected to TDS is sufficient - In view of the data furnished and comparing the ratio of expenses incurred to turnover for the earlier years - The scope for some inflation of such expenses should be given Decided against Revenue. Whether the income from agricultural land is agricultural income or income from other sources The assessee has shown agricultural income in his original return of income No material or evidence was found during search showing assessees ownership of agricultural land - Held that:- In view of the details of agricultural land holding and document numbers and relevant records furnished - The assessee is the owner of the agricultural lands - In the assessment year 2006-07, the agricultural land was sold and was offered to capital gains Decided against Revenue. Whether the Assessing Officer is required to confine himself only to the material found during the course of search operation Held that:- The assessee has filed a letter dated November 24, 2009 explaining that the ownership of the agricultural land purchased in the year 1986 and 87 - The assessee has substantiated the fact of holding agricultural land by way of proper evidence No question of observing material found during search Decided against Revenue. Addition u/s 68 The assessee had received certain unsecured loans - The assessee filed confirmation letters and other details in respect of some of the creditors and in respect of other creditors the information filed was either incomplete or no information was filed at all - Held that:- Following CIT v. Maduri Rajaiahgari Kistaiah [1975 (12) TMI 8 - ANDHRA PRADESH High Court] Even on rejection of books of account and when business income is estimated the addition towards unexplained cash credit can be separately valued The issue was restored back for re-examining the facts and circumstances.
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