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2015 (1) TMI 1342 - ITAT AHMEDABADUnexplained credit u/s.68 - non furnishing of information - Held that:- CIT(A) in appeal observed that evidences have been provided to Assessing Officer during assessment proceeding who instead of carrying further investigation into the source of funds with the lenders, issued show cause on the basis of doubts and suspicion. Even during course of remand proceedings, Assessing Officer did no investigations, which is not justified. Both the lenders are Income Tax assessee and confirmations were given. Source of funds with creditors were also provided to Assessing Officer. Assessing Officer instead of taking action, made addition for the reason that cash was deposited before the loan transactions. The deposit of cash proceeding transactions can give rise to doubt and be a starting point for investigation but cannot be the basis of conclusion disregarding other evidences. Nothing adverse has been brought on record by Assessing Officer with regard to evidence produced by assessee on this point. In any manner, since creditors were assessed to tax, confirmation were filed, TDS deducted on interest credit and loan were reflecting in their accounts, no addition could be made in the hands of assessee u/s. 68. Accordingly, CIT(A) justified in deleting addition - Decided in favour of assessee Disallowance of interest - assessee had debited interest expenses which was provided at 12% but had not charged interest on loan given to 3 persons - Held that:- Matter was carried before the First Appellate Authority, wherein various contentions were raised on behalf of assessee and having called for remand report and considering the same CIT(A) observed that evidence shows that interest had been charged by assessee on advances given to M/s. Royal Agencies and fact that advances to other concerns were business advances, disallowance of interest was not warranted. Accordingly, same was rightly deleted. We uphold the same.- Decided in favour of assessee Unexplained income on the basis of interest - non receipt of reply from parties u/s. 133(6) - Held that:- As before the First Appellate Authority, various contentions were raised on behalf of assessee inter alia stated that assessee had regular business dealings with these persons. Assessee submitted ledger copies in his books as also confirmations from the said parties to establish that transactions and outstanding balances were genuine. Same were forwarded to Assessing Officer for his comments after verification of genuineness. It was stated by Assessing Officer in remand report that contentions put for by Authorized Representative is correct and matter be decided on merits. In view of comments of Assessing officer and fact that necessary confirmations were submitted on behalf of assessee, which was in conformity with the outstanding balances in the books. CIT(A) was justified in deleting addition - Decided in favour of assessee
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