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2012 (6) TMI 354 - AT - Income TaxAllowable deduction from salary received by MLA - AO allowed daily allowance and constituency allowance, fully exempt u/s 10(17)(i) and 10(17)(iii) and dis-allowed balance amount claimed by assessee - assessee contending deduction u/s 57 - Held that:- ‘Salary’ and other allowances received by an MLA, arising out of such position, are to be assessed to tax under the head ‘Income from other sources’, however CIT(A) has rightly affirmed act of AO that provisions of section 57 do not provide for any deduction of expenditure from such salary income, etc of an MLA. Only those exemptions as laid out as per the provisions of section 10(14) read with Rule 2BB(1) and section 10(17) are only allowable from an MLA’s salary. Unexplained credit u/s 68 - alleged gift to son - assessee contended source of gift was out of loan obtained from Canara Bank, withdrawals from partnership firm and agricultural income of HUF - Held that:- Assessee merely furnished an explanation in letter without any corroborative evidence or documentary proof to substantiate the claim. No copy of sanction letter for loan, name and capital account of the firm from which the withdrawals were allegedly made, proof of withdrawals from HUF out of sources from agricultural income were provided. Hence addition rightly made - Decided against assessee.
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