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2017 (9) TMI 800 - AT - Income TaxAddition on non-genuine creditors - Held that:- During the first appellate proceeding, the assessee furnished written submission on 23.04.2014. The ld. CIT(A) after considering the submission concluded that the creditors namely Chennur Textile, S. Henil & Co. and Ishtiyak Ahmed, the assessee was unable to prove the genuineness about the creditors. The assessee has proved genuineness with respect of Santhil Kumar Textile KPM against whom a liability of ₹ 27322/- was shown. The ld. CIT(A) considering the fact deleted the addition to the extent of ₹ 27322/- and sustained the remaining addition. We have noticed that the finding of ld. CIT(A) is based on material fact available on record and do not require any further interference at our end. Thus, Ground No.1 raised by assessee is dismissed. Cash expenses disallowance - Held that:- The assessee failed to substantiate his claim even before the ld. CIT(A). The ld. CIT(A) observed that the salary expenditure of ₹ 264.44 Lakhs (except expenditure of ₹ 25,000/- by cheque) has been shown in cash. Since the assessee has to failed to substantiate and provide the details before the AO as well as before the ld. CIT(A). The ld. CIT(A) however, restricted the disallowance to ₹ 8,00,000/-. Before us, the assessee failed to substantiate his claim as to why the addition be deleted. As the assessee has neither come forward nor substantiate his claim. Thus, we do not find any illegality or infirmity in the order passed by ld. CIT(A). Addition on account of estimate of G.P. @ 6% - Addition u/s 68 - CIT-A deleted both additions - Held that:- CIT(A) considered and relied upon the documents which were not filed before the AO during the assessment proceeding. Considering the submission of ld. DR for the Revenue, we are of the view that the documents furnished before the ld. CIT(A) for the first time required verification by the AO. Hence, the appeal of the Revenue is allowed. The order of ld. CIT(A) to the extent of deleting the addition u/s 68 of the Act and deleting the estimate G.P. @ 6% are restored to the file of AO. The AO is directed to pass the order afresh in accordance with law
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