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2013 (9) TMI 488 - AT - Income TaxDisallowance of business expenses - Repairs and maintenance expenses - CIT deleted disallowance - Held that:- when a categorical finding was given by the AO in the assessment order while making the impugned disallowance that the supporting bills and vouchers were not produced by the assessee and the claim made by the assessee of having produced the said vouchers and bills during the course of assessment proceedings was contrary to the finding of the AO, the ld. CIT(A) ought to have given an opportunity to the AO to verify the claim of the assessee in the light of said documentary evidence and this position has been fairly accepted even by the ld. Counsel for the assessee - matter remanded back. Addition on basis of annual information report - Difference in the receipts as per the AIR and the receipts as shown by the assessee - Held that:- assessee has not been able to prove that reconciliation was actually pre-paid and submitted before the AO - assessee thus has failed to reconcile the difference pointed out by the AO on the basis of Annual Information Report - no justifiable reason to interfere with the impugned order of the ld. CIT(A) confirming the addition made by the AO on account of said difference - Decided in against assessee. Unexplained expenditure u/s 69C - Expenditure on marriage - CIT confirmed addition - Held that:- It is not in dispute that the hotel booking for the wedding guests was done in the name of the assessee company and the expenses were incurred on payment made to concerned hotels against the said bookings - if the said expenses on payment made against hotel booking done in the name of the assessee company were incurred by somebody else and not by the assessee as claimed the burden is on the assessee to prove its claim by producing the relevant documentary evidence on record - Since the hotel booking was done in the name of the assessee company, there was a presumption that expenses on payment against said hotel booking were incurred by it and the assessee having failed to rebut the said presumption by bringing any documentary evidence on record - CIT was justified in invoking section 69C - Decided against assessee. Disallowance of business income - CIT marked up the cost by 20% - Held that:- In the earlier years, the AO worked out the addition by applying a net profit ret of 5% while in the year under consideration, he has applied a 20% mark-up on the total cost incurred by the assessee - Therefore addition is deleted - Decided in favour of assessee. Capital or Revenue income - Damages received on termination of rental agreement - Held that:- at the time of hearing in the reply to query raised by the bench, there was no agreement entered into between the parties in writing for termination or cancelation of the live and license agreement. The amount of security deposit in question was actually forgone by the licensee as per the order of the arbitrator - It is manifest from the operative portion of the arbitrator's order reproduced that the property of the assessee was sealed by the committee of the Hon'ble Supreme Court as a result of which the exiting tenant was not in a position to use the said property and even the assessee was not in the position to find out any other tenant - The said amount thus was received by the assessee on revenue account and not on capital account which constituted business income of the assessee as the rental income received from the property earlier was offered to tax as business income by the assessee itself - Decided against Assessee.
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