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2015 (12) TMI 387 - ITAT BANGALOREAddition for a claim of interest and salary dues - CIT(A) deleted the addition - Held that:- Assessee had clearly mentioned in its return of income that he was following mercantile system of accounting. A system of accounting followed by the assessee cannot be changed simply based on an oral statement. We are of the opinion, that once the books of accounts are maintained in mercantile system of accounting, claim of outstanding expenditure if its correct, cannot be disallowed. AO also had not doubted the genuineness of the claim. In the circumstances, we are of the opinion, that CIT(A) was justified in deleting the addition. - Decided against revenue Addition for difference in capital account - CIT(A) deleted the addition - Held that:- Learned CIT(A) had directed the AO to verify whether the opening balance as on 01-04-2008 was the same as the closing balance as on 31-03-2008. The direction was to verify the claim and allow it, if found correct. We do not find any reason to interfere with such direction - Decided against revenue Additions made for unsecured loans - CIT(A) deleted the addition - Held that:- Assesese in his reply to a question raised during the course of his examination had stated that he was not having any confirmation from the loan creditors. The CIT(A) had given relief to the assessee with a finding that the Pan Nos. of the creditors were available and they were assessed by the very same AO. May be this is true. However, there cannot be any dispute that it required a verification by the AO. Just because the creditors were assessed by the same AO, would not be a reason to say that assessee had no duty to furnish a confirmation letter from the creditors. Confirmation letters can also throw light on the nature of the underlying transactions. We are of the opinion, that the issue requires a fresh look by the AO. We therefore, set aside the orders of the lower authorities in this regard and remit the issue regarding the addition for unsecured loans back to the file of the AO for consideration afresh in accordance with law. - Decided in favour of assessee for statistical purposes. Addition on deficit in source of drawings - CIT(A) deleted the addition - Held that:- The CIT(A), on appeal had considered the fact that assessee belonged to a group of individuals all of whom were assessed and located in Mandya. He held that an addition of ₹ 50,000/- would be fair, considering the fact that other family members of the assessee were also being assessed. We are of the opinion that the CIT(A) was justified in giving relief to the assessee - Decided against revenue Addition made for agricultural income - CIT(A) deleted the addition for a reason that assessee was owning 3 acres and 2 guntas of land situated at Devanagar, Dist. Maharashtra - Held that:- No doubt, learned DR argued that mere ownership of the agricultural land would not be sufficient to accept a claim of agricultural income. However, this argument can be considered only where the agricultural income claimed is of a higher order. It is admitted position that the holding of the assessee was at Sangli, which is a rich sugar belt area in Devanagar. Assessee had also given the details of the agricultural crops which are being raised by it. In such circumstances, on a preponderance of probability, the CIT(A) had allowed the claim. We do not find any reason to interfere with the order of the CIT(A). - Decided against revenue
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