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2016 (5) TMI 237 - AT - Income TaxAddition u/s 68 - Held that:- In this case in some of the bank accounts there are entries of transfer deposits in the bank account of these persons before the issue of cheque to the assessee. However we could not find any entry of unsecured loan in the statement of affairs of these parties except gift received from the mother of ₹ 50,000/- in some accounts. Therefore there is no source available with the assessee of the sums shown to have been received by the lenders through banking transfer entries in their account. Further the finding of the CIT (A) in a tabular form also depict the modus operandi of the amount deposited in the books of the assessee as unsecured loan from these parties. We are of the view that there is no difference if the amount is deposited by the assessee through cheque or through banking channel as these are the different modes of the transaction. They neither prove nor disprove the creditworthiness of the lender or genuineness of the transactions. We are also of the view that no decision cited by the assessee or ld AR are applicable on the facts of the case of the manner in which the return of income is filed, statement of affairs are prepared and amounts are introduced in the books of assessee which does not commensurate with the income shown by the lenders. In view of our above finding we also hold on the same reasoning as there is no change in facts and evidences produced before us that the loans of ₹ 51,81,500/- has rightly been added by the AO u/s 68 of the Act and confirmed by the ld. CIT(A) - Decided against assessee Disallowance u/s 40a (ia) - non-deduction of tax at source to the persons who are agent of foreign shipping lines - Held that:- The provision of section 172 applies to them and tax is not required to be deducted u/s 194 C of the act. Secondly if the expenses are already paid and not payable in that case the provision of section 40a (ia) is required to be applied and no disallowance is called for to the extent sums are paid, in view of the decision of the Hon’ble Allahabad High Court in the case of CIT Vs. Vector Shipping Pvt. Ltd [2013 (7) TMI 622 - ALLAHABAD HIGH COURT]. In view of this above two directions, we set aside the issue to the file of the AO for verification if the payments are made to the agents of foreign shipping agents then no disallowance is called for. Further, the disallowance is also required to be reduced to the extent of amount paid by the assessee in view of decision of the Hon’ble Allahabad High Court.
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