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2017 (4) TMI 1099 - AT - Income TaxAddition u/s 68 - CIT-A deleted addition - Held that:- We find merit into the contentions of the assessee that the partner can bring fresh capital by raising funds from third party directly to the account of the firm. Therefore, we do not see any reason to interfere into the order of the ld. CIT(A) and the same is hereby confirmed. The ground raised in the revenue’s appeal is dismissed. Disallowance of claim of deduction U/s 8-IB - Held that:- In view of the provisions of Section 80IB(3) and 80IB(14)(c) which defines the initial assessment year and also as the audit report itself certifies that the operation of the undertaking commenced from Nov, 2001 and thus the initial assessment year being assessment year 2002-03, the disallowance made by the Assessing Officer is correct and upheld. The ground of appeal is dismissed Trading addition - Held that:- The Assessing Officer has not rejected the books of account. The assessee has been maintaining details. Ld. AR has relied upon the decision of the Hon’ble Rajasthan High Court in the case of CIT Vs. Maharaja Shree Umed Mills Ltd. [1991 (5) TMI 46 - RAJASTHAN High Court] and Ramjivan Jagannath Vs. ACIT (2006 (10) TMI 145 - RAJASTHAN HIGH COURT) wherein it has been held that the gross profit rate cannot be looked into when the Assessing Officer has not rejected the books of account of the assessee and without making this as a base, it could not be said that the expenditure has been inflated. In the present case, admittedly, the Assessing Officer has not rejected the books of account. He has not given the basis for making ad hoc disallowance, therefore, we direct the Assessing Officer to delete the disallowance. This ground of the assessee’s C.O. is allowed.
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