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2012 (10) TMI 294 - AT - Income TaxAddition u/s 68/69 - CIT(A)restricted the addition - Held that:- The CIT(A) found that the assessee himself has disclosed Rs.12,50,000/- in the return of income. Therefore, this amount was also required set off and adjustment in the addition of Rs.1,31,70,346/- is required to be reduced. Even this amount of Rs.12,50,000/- is reduced from Rs.1,31,70,346/- and balance comes to Rs.1,19,20,346/-. In the light of above discussion the assessee was entitled to relief of set of Rs.12,50,000/- amount which has been already incurred in the return of income. Therefore, the relief to that extent was required to be granted but the CIT(A) allowed only Rs.11,70,346/- on the ground that the assessee himself has surrendered the amount at the time of assessment proceedings in the light of fact we do not think that the Revenue should have any grievance against the order of CIT(A) - against revenue. Addition under section 14A - Held that:- The CIT(A) has correctly appreciated the facts and found that entire funds of group has been channelised through Vijay Kumar Agarwal. There is an interest receipt of Rs.2,60,684/-. Therefore, interest pertaining to diversion of borrowed fund in share application is required to be restricted only in respect of net amount of interest. Thus the CIT(A) has rightly allowed relief of Rs.2,60,684/- and has correctly confirmed the addition to the extent of Rs.34,167/-. Activity related to Bardana and advances to farmers and charging of interest - Held that:- The pages of Paper Book referred by the assessee at the time of hearing requires necessary reconciliation. It has also been noticed that there is no consolidated reconciliation on record based on which it can be said that the transaction relating to Bardana and interest has been the entries for amounts which were considered for calculation of peak amount. In the absence of complete reconciliation of details in this regard that the transaction relating to Bardana and interest were included in the consolidated cash book on which basis a peak amount has been calculated. In the absence of complete facts, the issue pertaining to Bardana and interest cannot be decided at this stage the order of CIT(A) is not in accordance with section 250(6) & send back to decide the issue afresh.
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