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2016 (12) TMI 1354 - AT - Income TaxAddition on account of unexplained marriage expenses - Held that:- As in case of Girdhari Lal Nannelal Vs. Sales Tax Commissioner, M.P. (1976 (3) TMI 51 - SUPREME Court) wherein it was held that in the absence of any material, the mere absence of explanation regarding the source of the expenses would not justify the conclusion that the sum in dispute represented profits of the firm derived from undisclosed sales. The said case law apply in the present case as the explanation was given by the Assessee during the assessment proceedings but the documents which were shown was not taken congnizance by the Assessing Officer for the expenses incurred. The statement of the partner cannot be the sole criteria for making an addition. Thus the CIT(A) was not right in confirming the addition in the hands of the Assessee firm. - Decided in favour of assessee Disallowance of the salary - Held that:- No discrepancy was pointed out in the salary expenses claimed by the assessee or the item of any inflated salary. The Assessing Officer has disregarded the books of accounts produced by the assessee during the assessment proceedings under Section 143(3) of the Act and other primary record solely on the ground that the assessee has made a confessional statement during the survey proceedings and voluntary payment of tax against the income from undisclosed source surrendered during the survey proceedings. The copy of the attendance register with details of salary was submitted during the assessment proceedings. The Assessing Officer has not pointed out any payment which is in excess of the actual payment in the assessment order. Thus the relevant material to establish the genuineness of the assessee firm was established which was overlooked by the CIT(A) as well as by the Assessing Officer. - Decided in favour of assessee
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