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2016 (5) TMI 317 - AT - Income TaxAddition on account of alleged unexplained cash credits - Held that:- Bank statement of Hina Maganlal Andharia has also been produced and speaks about some transactions which is required to be verified in the interest of justice also. However, it is also recorded that the statement of Hina Maganlal Andharia has also been recorded at the time of assessment of the case which is also required to be viewed in accordance with law. Anyhow these transactions have also not been discussed in the order passed by the learned CIT(A). So far as the loan received from D.S.Mehta is concerned the copy of bank pass book showing the withdrawals are also produced before us. These documents also nowhere found discussed in the order under challenged. Since the assertion of the assessee has been declined by the Assessing Officer as well as confirmed by the learned CIT(A) on the ground of non-creditworthiness of the creditors but the said documents were not discussed therefore, we are of the view that the matter of controversy in this regard is also required to be re-examined by taking into account the above mentioned documents to decide the claim of the assessee in the interest of the justice therefore we restore this issue upon the file of Assessing Officer again to decide the matter afresh after giving an opportunity of being heard to the assessee in accordance with law - Decided in favour of assessee Disallowance u/s. 14A - Held that:- As per the bank sanction letter, the appellant is required to maintain a minimum term deposit of 25% of this limit as margin money. The appellant has invested more money in fixed deposits in order to obtain additional letters of credit from the bank at short notice. The appellant submits that the borrowed money was utilized for the purpose of business and not for the purpose of investment in share. Further, all expenses pertaining to the exempt income like D’mat charges, bank charges, etc. are debited by the appellant to his personal capital account and not to the business accounts. Therefore it is quite clear that no expenditure of any kind was occurred to get the exempt income therefore in these said circumstances no disallowance of expenses is required u/s. 14A read with Rule 8D of the Act - Decided in favour of assessee Disallowance of office expenses - Held that:- Addition to the extent of 10% confirmed as relying on assessee’s own case for the A.Y.2010-11.
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