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2011 (4) TMI 1364 - AT - Income TaxUnexplained cash credit - sale of shares - The AO treated the transaction as ingenuine and bogus by observing that the assessee used colourable device in connivance with stock brokers to introduce the assessee’s undisclosed income in the guise of transactions in penny stock of Bolton Properties and Blue Chip. He, therefore, rejected the contention of the assessee and treated the sale consideration of Shares of ₹ 39,80,980/- as unexplained cash credit and made the addition. Likewise, in HUF’s case also the AO rejected the assessee’s claim and treated the LTCG of ₹ 68,89,850/- as unexplained cash credit on the self same reasoning. In appeal, the Ld. CIT(A) deleted both the additions by stating that since the appellant has furnished satisfactory evidence in support of the purchase and sale of shares, the AO is not correct in assessing capital gain as unexplained credit u/s. 68. HELD THAT:- In this view of the matter and in the absence of any contrary material brought on record by the revenue at the time of hearing before us, we do not find any infirmity in the order of the Ld. CIT(A) and the same is hereby upheld. the appeal of the revenue in respect of individual assessee is concerned - the assesee claimed interest expenditure of ₹ 1,68,592/- on the loan. At the time of assessment proceedings, the AO asked for details regarding the nexus between the loan taken and the investments made. Since the assessee filed no explanation before the AO, he disallowed the interest claimed of ₹ 1,68,592/-. In appeal, the Ld. CIT(A) directed the AO to delete the addition. Aggrieved, the revenue is now in appeal before us. HELD THAT:- since the assessee failed to file any explanation and details regarding the nexus between the loan taken and the investments made. In appeal, while allowed the assessee’s claim, by the Ld. CIT(A). In the absence of any controverting material brought on record by the revenue authorities to rebut the finding of the Ld. CIT(A), we do not find any infirmity in his order and the same is hereby upheld. This ground of appeal of the revenue is dismissed. Disallowance on account of depreciation - HELD THAT:- We find that since the assessee failed to furnish necessary details regarding acquisition, transportation, installation and use of plant and machinery, the Assessing Officer has disallowed the depreciation as claimed by the assessee. In appeal, the Ld. CIT(A) while allowing the assessee’s ground of appeal. In the absence of any controverting material brought on record by the revenue authorities to rebut the finding of the Ld. CIT(A), we do not find any infirmity in his order and the same is hereby upheld. This ground of appeal of the revenue is dismissed.
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