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2016 (8) TMI 904 - AT - Income TaxDisallowance of deduction towards donation paid to political party u/s 80GGC - A.O. disallowed deduction for the reason that donation to JOGO party is not proved with necessary evidences- Held that:- The assessee has paid donation to JOGO party by way of cheques. The assessee has furnished cheque details for having paid the amount. The assessee also furnished details of political party along with confirmation letter issued by the JOGO party. On perusal OF details available in the paper book, we find that JOGO party is registered u/s 29A of the Representation of People Act, 1951 by the election Commission of India. The assessee has furnished letter issued by the Election Commission of India, notification published in the Gazette of India and Form No. 24A a return of contributions submitted to Election Commission of India in terms of sec. 29C of the Representation of People Act, 1951. All the documents indicate that JOGO party is unrecognized registered political party u/s 29A of the Representation of People Act, 1951. The contribution return in form No. 24A filed with Election Commission of India, indicate the name and address of donor details. Therefore, we are of the view that the A.O. was erred in disallowing deduction claimed u/s 80GGC of the Act. Hence, we set aside the CIT(A) order and direct the A.O. to delete the addition. - Decided in favour of assessee Addition of unexplained creditor’s - A.O. made additions towards sundry creditors for the reason that the assessee has failed to furnish confirmation letters - Held that:- A plain reading of section 68 of the Act, makes it clear that any sum found credited in the books of accounts of the assessee is not explained to the satisfaction of the A.O., then sum found credited shall be treated as income of the assessee of that previous year. In other words, addition can be made for fresh credits of the year and no addition can be made for the amounts brought forwarded from the previous year. In the present case on hand, on perusal of facts, we find that all creditors are brought forward from last years and paid during the current financial year. Therefore, we are of the view that the A.O. was erred in treated sundry creditors brought forward from last year as unexplained creditors. The CIT(A) after considering details filed by the assessee and also taken in to account remand report of the A.O. deleted addition made by the A.O. The facts remain same even before us. The revenue has failed to prove the findings of fact recorded by the CIT(A) is incorrect. Therefore, we upheld the CIT(A) order and delete the addition made by the A.O.- Decided in favour of assessee Addition towards unexplained cash credits into ICICI Bank account - Held that:- We find force in the arguments of the assessee for the reason that the assessee has not maintained any bank account with ICICI Bank and this fact was not disputed by the revenue. The assessee, on the other hand furnished copy of Axis bank account which was recorded in the regular books of accounts. On perusal of bank statement of Axis bank, we find that there are only two cash deposits of ₹ 1600 on 8-7- 2008 and ₹ 8900/- on 18-11-2008 for which sources has been explained. Therefore, we are of the view that the A.O. has made additions without any base. The CIT(A) after considering relevant details filed by the assessee and also taken into account remand report of A.O. deleted additions. The facts remain same even before us. The Revenue has failed to counter the contention of assessee that he does not operate any bank account with ICICI Bank. Therefore, we upheld the CIT(A) order and delete the addition made by the Assessing Officer.- Decided in favour of assessee Disallowance of expenditure - A.O. disallowed expenditure for the reason that the assessee has not explained the nature and source of income earned from the business - Held that:- We find force in the arguments of the assessee for the reason that the assessee is the proprietor of M/s India Battery Works and Labelle Slimming and Beauty Clinic. We further noticed that she had reported gross sales income of ₹ 49,31,376/- from trading activity and indirect income of ₹ 16,49,400/- from the business of India Battery Works and Labelle Slimming and Beauty Clinic. The assessee has proved that she had incurred expenditure being interest on loan and depreciation on motor car used for the purpose of business. Therefore, we are of the view that the A.O. was erred in disallowing expenditure incurred for the purpose of business. The CIT(A) rightly deleted the additions. We do not see any error or infirmity in the order of CIT(A). - Decided in favour of assessee
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