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2016 (1) TMI 406 - AT - Income TaxAddition on account of disallowance of non-genuine brokerage expenses - CIT(A) deleted the addition - Held that:- CIT(A) is not controverted by the Revenue by placing any material on record suggesting that the payments paid by the assessee were bogus. In absence of such material establishing that the payments were not genuine or bogus, we do not see any reason to interfere with the finding of the ld.CIT(A), same is hereby upheld. - Decided against revenue. Addition u/s.68 - CIT(A) deleted the addition - Held that:- From the above, it is evident that the ld.CIT(A) has given a finding on fact that the depositors were assessed to tax and the entire records were available to verify the same. Therefore, the AO treated the same as unexplained amount on the basis of superficial reasons. The ld.CIT(A) has given finding on fact that the loan is genuine, supporting evidences with regard to the identity of the creditor in the form of Income Tax Return, etc. was furnished to the authorities below, therefore, in our considered view, the AO was not justified in making the addition and disallowance of interest thereof. Therefore, we do not see any reason to interfere with the finding of the ld.CIT(A), same is hereby upheld.- Decided against revenue. Addition on account of alleged excess claim of shortage - CIT(A) deleted the addition - Held that:- There is no dispute with regard to the fact that the AO has not pointed out any specific defects in the books of account. The AO has also not resorted to the rejection of books of account, however, he made estimation on the basis that the yield as declared in earlier year which was higher than as claimed in the year under appeal. The basis of such finding as per AO is that normally in textile mill processing, there is percentage of shortage at 15 to 17% in the yield. The AO has not given any basis as to why he is not accepting the contention of the assessee when the assessee has placed all details before him with regard to yield. Under these facts, we do not see any reason to interfere with the finding of the ld.CIT(A), same is hereby upheld.- Decided against revenue. Addition made u/s.69B - CIT(A) deleted the addition - Held that:- We find that the AO has given finding that there was a difference between the quantity of stock furnished to its Banker and shown to the Revenue. The only question left with us is whether the information furnished to the Banker by the assessee was correct or not. The assessee has accepted the quantitative figure of stock given to its Banker and the same has been disclosed in the Audit Report which was enclosed while filing the return of income. In view of the fact that there was a quantitative difference in the stock furnished to the bank and submitted before the Revenue-Department by the assessee, we are unable to agree with the finding of ld.CIT(A), as it is not the case of assessee that the value adopted by him for bank and declared to Revenue is different but the quantity matches. Therefore, we hereby set aside the finding of the ld.CIT(A) on this issue and sustain the addition made by the AO.- Decided in favour of revenue.
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