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2016 (1) TMI 576 - AT - Income TaxAddition u/s 69A - excess cash found during the Survey operations - whether the said excess cash was duly explained by late Shri Ramautar Prasad Verma and his son by filing proper cash-flow statements? - Held that:- Plea of the asessee is duly substantiated by the cash flow statement of Shri Arun Kumar Verma, assessee's son and personal cash book of the assessee. The fact that such an explanation was not given at the time of survey cannot be the basis for rejecting the claim of the assessee. Accordingly direct the AO to delete the addition made in this regard. - Decided against revenue Unexplained jewellery found during Survey - Held that:- One plea of the assessee that the difference being very minor should be ignored. Another plea of the assessee was that there would be human erred in taking the weight from the weighing machine. These are general explanation and cannot be the basis on which addition can be deleted. It is also do not find the item-wise tally of the stock as per physical verification at the time of survey on the stock as per the stock register of the assessee. It is therefore not possible to come to a conclusion that the difference is only due to incorrect weighing of the items of jewellery. Therefore, confirm the order of CIT(A) in this regard. - Decided against assessee Addition made out of payments of Commission - Held that:- The evidence on record in the form of bills raised by Shri Ashok Kr. Gupta and Shri Sunil Verma are placed at pages 22 to 27 of the assessee's paper book. The bills merely refer to commission on sales and making charges for a particular period. The evidences filed by the assesse cannot be accepted by the AO as it is and therefore AO thought it fit to summon the persons to whom the commission was paid. The AO could not succeed to procure the persons of the recipients of the commission. The assessee also did not make any efforts to produce these person before the AO for examination. In such circumstances disallowance of commission was rightly made by the revenue authorities - Decided against assessee Disallowance towards Travelling and Conveyance expenses and repairs and maintenance expenses - Held that:- The AO made the impugned disallowances on the ground that the same were supported by self made vouchers. Disallowance in question was a paltry sum compared to the expenditure claimed by the assessee. It is of the view that the disallowance is reasonable and does not call for any interference. - Decided against assessee
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