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2014 (2) TMI 885 - ITAT HYDERABADReceipt of unsecured loan - Cash credit – Held that:- The Assessee has demonstrated before the lower authorities and even before us the identity and creditworthiness of the creditors and genuineness of the transaction as the transaction done through banking channel - There is also no incriminating material found in the search proceedings – Thus, the addition made by the AO and confirmed by the CIT(A) set aside – Decided in favour of Assessee. Disallowance of transport expenditure – Held that:- Out of the claim of transportation charges, the AO disallowed 10% on the ground that the claim is on higher side and vouchers maintained by Assessee for the same are not verifiable - The CIT(A) restricted the disallowance on the ground that the disallowance made by the AO is on higher side - there is unaccounted turnover in the case of asessee unearthed in the search - Once addition was made on the basis of GP disallowance of various expenditures should not arise – thus, the addition made by CIT(A) aside – Decided in favour of Assessee. Disallowance of interest – Held that:- Assessee contended that he has not received any additional interest nor there was any claim in the hands of the firm - The decision in G. Venkat Rao & Others Versus Asstt. Commissioner of Income-tax, Circle 8(1), Hyderabad [2012 (10) TMI 530 - ITAT HYDERABAD] followed - Interest paid to partners, which has been disallowed in the hands of the partnership firms cannot be assessed in the hands of the partners – the order set aside and the matter remitted back to the AO for determination of correct amount – Decided in favour of Assessee.
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