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2015 (12) TMI 1611 - AT - Income TaxPenalty u/s 271(1)(c) - disallowance of salary and tenant accommodation charges - Held that:- Neither at the time of assessment stage nor at the time of penalty proceedings or even during appeal proceedings, the assessee has rebutted the findings of the ld.AO, by any documentary evidence that, it has actually incurred any genuine expenditure under the head salary, or tenant accommodation charges. Once the ld.AO has proved that the vouchers of these expenses are not reliable at all, the assesee could have produced some of the employees and the tenants before the ld.AO to disprove the findings. As the assesee failed to do so, the belief that the claim of expenses under the head salary and tenant accommodation charges are not genuine, strengthens. Moreover, the assesse had agreed for an adhoc disallowance in respect of the technical errors to buy peace and to avoid litigation. - Decided against assessee Addition u/s 68 - Held that:- In the present case, ostensibly, the assessee had furnished the details of the loan taken from the 8 parties along with the PAN numbers before the ld.CIT(A). It was submitted before the Ld.CIT(A) that due to unavoidable circumstances, the assessee could not produce the third part evidences i.e., confirmation letters etc., at the time of assessment proceedings. The ld.CIT(A) instead of remanding the details furnished by the assessee to the ld.AO, rejected the same without giving any cogent reasons. Further it is observed that the ld.AO has not recorded his satisfaction in respect of the cash credits The aforesaid features does not establish that the cash credits shown in the books of accounts remained unexplained. Therefore we are inclined to delete the penalty levied by the ld.AO on the cash credits - Decided against revenue
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