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2011 (1) TMI 1182 - AT - Income TaxBad debt – disallowance of deduction - Held that:- assessee made the deposit with the banking company, so there was relationship of debtor and creditor and as the amount deposited by the assessee with the bank could not be recovered so, there was loss to the assessee, which was claimed as bad debts. The assessee had written off the amount in the books of account, therefore, the claim of the assessee that it is allowable as bad debts. - Decided in favor of assessee. Non deduction of TDS u/s 194H - Expenditure of brokerage against the transactions of buying and selling properties - Held that:- assessee is an individual and therefore, the provisions of s. 194H are not applicable; however, in the present case, the provisions contained in the second proviso to s. 194H are also not applicable to the facts of the assessee's case because her total sales/gross receipts did not exceed the monetary limit specified in s. 44AB of the IT Act - learned CIT(A) was not justified in confirming the addition made by the AO. - Decided in favor of assessee. Depreciation and administrative expenses - Ownership - Held that:- issue relating to depreciation on building set aside to the file of the AO for fresh adjudication - Regarding disallowance of adminstrative expenditure - disallowance of entire expenses was not justified, to meet the ends of justice deem it appropriate to restrict the disallowance to the extent of 50 per cent out of the disallowances made by the AO on account of the expenses. Addition in capital account - Held that:- assessee furnished a handwritten receipt issued by one Shri Bhupinder Singh s/o S. Ajmer Singh where the said person had shown that he had paid Rs. 1,50,000 through account payee cheque to the assessee towards purchase of old school furniture from her, it appears that all the information was in his possession and if he was having any doubt regarding the receipt by the assessee on account of sale of old furniture, AO made the addition only on the basis of doubt and the learned CIT(A) had also not given any cogent reason while confirming the action of the AO, addition sustained by the learned CIT(A) deleted. Interest - Addition on presumption and surmises - Held that:- assessee has not been rebutted at any stage that the loan was given to close relatives i.e., son-in-law and sons and that no interest has been charged from them since friendly loans were given out of surplus money. In the present case, the AO had not brought any material on record to substantiate that the assessee in her money lending business has raised interest-bearing loan which had been utilised for giving interest-free loans, addition made by the AO on the basis of presumption was not justified, addition made and sustained on the basis of presumption deserves to be deleted, the appeal is partly allowed for statistical purposes
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