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2015 (8) TMI 698 - AT - Income TaxAddition u/s 68 - CIT(A) deleted addition - Held that:- AO wrongly considered the whole of the loans pertaining to the earlier as well as the year under consideration amounting to ₹ 31,87,902/- as not verifiable. Later on, he rectified the mistake and considered the creditors of ₹ 25,46,685/- as unverifiable and made the addition u/s 68 of the Act. The assessee due to illness could not produce the evidences before the AO however the same were furnished in the form of confirmation along with proper identification and the copies of acknowledgement of the returns filed by the creditors before the Ld. CIT(A), who after proper verification found that only the loans amounting to ₹ 1,32,000/- were received in this year and the assessee furnished the relevant documents for identification and confirmation. The Ld. CIT(A) forwarded the new evidences to the AO who simply stated that those should not be admitted, however, he had not given the reason as to why those were not admissible. It, therefore, appears that the addition made by the AO was based only on surmises and conjectures which is not enable particularly when during the year under consideration the amount received from the new creditors was only of ₹ 1,32,000/-. We, therefore, considering the totality of the facts do not see any infirmity in the order of Ld. CIT(A) on this issue.- Decided in favour of assessee. Disallowance of expenses - CIT(A) deleted the addition - Held that:- In the present case, it appears that the books of accounts of the assessee were duly audited and the AO while making the ad hoc disallowance did not point out any specific item of the expenses which was not incurred for the business purposes. Therefore, the Ld. CIT(A) was fully justified in deleting the impugned addition made by the AO. We do not see any valid ground to interfere with the findings of the Ld. CIT(A) on this issue. As regards to the cross objection filed by the assessee is concerned, it is noticed that no specific relief has been sought and the assessee mainly supported the order passed by the Ld. CIT(A). and in the former part on this order, we have dismissed the appeal of the department. Therefore this cross objection in support of the order of the Ld. CIT(A) becomes infructuous. Accordingly the same is dismissed as infructuous.
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