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2014 (6) TMI 909 - AT - Income TaxAddition u/s 68 - Held that:- Assessee has filed confirmation letter of Shri. A. K. Shukla and the bank statements to show from where the money was received by the assessee. The entire transaction was undertaken through banking channel. Therefore, it should not be doubted on technical ground that at one point of time the assessee has stated that he received Canadian Dollars, whereas in the confirmation letter he has stated that he has received the loan in US Dollars. Since the assessee has filed enormous evidence to establish the genuineness of the transaction and creditworthiness of the creditor, addition is not called for unless and until it is proved otherwise. Accordingly, we find no merit in the addition and we delete the same - Decided in favour of assessee. Disallowance of travelling and conveyance charges on account of non-professional use - Held that:- Undisputedly personal use of vehicles cannot be ruled out. Therefore, certain disallowance is called for. But the disallowance estimated by the ld. CIT(A) @ 20% is on higher side and we accordingly reduce the same to 10% to meet the ends of justice.- Decided partly in favour of assessee. Disallowance of depreciation on car at 25% on account of personal use - Held that:- We reduce the disallowance on account of depreciation to 10% on account of personal use of the vehicle - Decided in favour of assessee in part Addition on agricultural income - Held that:- We find that the assessee has filed copies of Revenue record before the ld. CIT(A) and the ld. CIT(A) himself has accepted that the assessee owns agricultural land, but he has confirmed the disallowance on the ground that no evidence was filed with regard to sale of agricultural produce and the expenses incurred in agricultural operation. In this regard, we would like to mention here that in a country like India farmers are not that much literate and they are not aware of the maintenance of accounts, etc. and no farmer maintains accounts for the expenses incurred in agricultural operation and agricultural income earned. Therefore, it is not proper to say that if the assessee does not maintain any accounts for agricultural operation, he is not entitled for any agricultural income. We are of the view that in such type of things, agricultural income is to be estimated on the basis of agricultural holdings. In this case, the assessee has sufficient agricultural holdings, therefore, the agricultural income declared by the assessee should be accepted. We accordingly set aside the order of the ld. CIT(A) on this issue and delete the addition. - Decided in favour of assessee.
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