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2015 (6) TMI 414 - AT - Income TaxDisallowance u/s 14A r.w. rule 8D - Held that:- In this case CIT(A) though upheld the applicability of Sec.14A of the Income tax Act, he has given direction to AO to look into the actual amount incurred for earning exempt income and recompute the same for the purpose of disallowance. Hence, the assessee’s grievance on the findings of the CIT(A) is misconceived. We do not find any infirmity in the order of the CIT(A) and the same is confirmed. - Decided against assessee. Addition u/s 68 - unaccounted cash credit - CIT(A) deleted the addition - Held that:- Genuineness of transaction cannot be said to have been proved by the confirmation letter filed by the assessee and thus, initial burden placed on the assessee is also not discharged. The finding of the CIT(A) that assessee has discharged the identity and capacity of the parties and genuineness of transaction is not borne out of records. In our opinion the judgment in the case of Orissa Corporation Pvt. Ltd. has no application because the facts in that case have a material effect with the credit worthiness and credibility of the creditors was not doubted in any manner. In this case inherent improbability to produce the creditor could be sufficient cause to reject the assessee’s claim even if simple statement of account of creditors was filed by the assessee. Genuineness of credit cannot be accepted merely because identity is established and amount received by cheque. Being so, in our opinion it is appropriate to remit the entire issue to the file of AO, for fresh consideration, with the direction to assessee to discharge the burden cast upon it so as to prove the identity and capacity of the parties, and the genuineness of the transaction. - Decided in favour of revenue for statistical purposes.
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