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2013 (10) TMI 276 - AT - Income TaxAddition on ground of sundry creditors - Addition of amount of Rs. 62,97,788/- - Held that:- Assessee had filed confirmations before Assessing Officer and had also furnished copies of ledger accounts - Assessing Officer has not disputed the purchases made by the Assessee from the aforesaid parties - Trade creditors were from purchases and full set off of purchase bills were produced before Assessing Officer – No material evidence is produced to controvert these findings – Decided against the Revenue. Addition of Rs. 26,03,728/- on account of capital introduction by the partners – Held that:- Assessee had furnished more than sufficient evidence to explain the source of funds introduced by the partners and had also furnished the copy of PAN numbers, Capital account, Balance sheet and returns of income – Moreover, when cash is introduced into partners firm and if the partners are unable to explain the source of funds, in the assessment proceedings of the firm, no addition can be made in the hands of firm but the addition can be made in the hands of individual partner – Decided against the Revenue. Addition of Rs. 1,12,80,134/- on account of non filing of details of TDS – Held that:- TDS was deposited with the prescribed time and thus there was no case of disallowance under 40(a)(ia) - Learned D.R. could not controvert the above findings nor could bring any contrary material on record – Decided against the Revenue. Disallowance of Rs. 2,05,936/- - Assessee has incurred various expenses in cash - Assessee could not produce the vouchers, A.O. made an ad-hoc disallowance of 25% of Rs. 3,43,228/- and added to the income – Held that:- Appellant was unable to produce full set of vouchers for the expenditure during assessment proceedings. Therefore the AO was right in disallowing a part such expenditure. But 25 % disallowance for such expenditure is according to me on the higher side - Restricted the disallowance to 10 % of such expenditure – Decided against the Revenue.
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