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2018 (2) TMI 431 - ITAT KOLKATADisallowance u/s 14A - Held that:- We find that the assessee has made investments in shares, PPF and mutual funds and no exempt income was earned during the year under consideration. Therefore, in view of decision of Hon’ble High Court of Delhi in the case of Chem Investment [2011 (11) TMI 30 - DELHI HIGH COURT] we find no infirmity in the order of Ld. CIT(A) and accordingly the ground raised in this regard by the Revenue is dismissed. Disallowance u/s 40(a)(ia) - short deduction and non-deduction of TDS - Held that:- It is observed from the assessment order it is clearly mentioned by the AO that the assessee did not furnish any evidence in support of his claim on expenditure. But however, it is seen from para no. 5.2, 5.3 and 5.4 the CIT(A) observed and deleted the said addition on the basis of documents and bills. Therefore, it shows that the assessee submitted a new documents before the CIT(A) which were not admittedly before the AO for his verification. Therefore, in these circumstances we deem it appropriate to remand this issue to the file of the AO for verification in terms of evidences filed Disallowance made u/s 40A(3) - payments in cash aggregate of payments exceeding the statutory limit of ₹ 20,000/- - Held that:- CIT(A) has verified the said payments in details found to be made through account payee cheques. The Ld. AR before us referred to page nos. 416 to 453 which are in the ledger accounts of the various entities as reflected in AO’s order under the different head i.e. service charge, drawing and drafting, machinery hire charges, material testing charges, soil exploration charges, transport charges and business promotion charges. Therefore, in our opinion the order of CIT(A) justified in holding the payments were made through account payee cheques and all other payments were made in cash are below the prescribed monetary limit u/s 40A(3) of the Act Addition made on account of unexplained cash credit - Held that:- Cash was deposited out of existing cash as per cash book. Regarding the account of the statement of the Kalikapur Branch which reflects opening balance in savings bank twice on 20.10.2008 at serial nos. 2 and 9. It is also observed at page no. 409, some of the payments were cancelled and transferred to SB account. Therefore, as rightly observed by the CIT(A) that there were cancellation of some amounts, duplication of amounts and also transferred from one existing account to another account belonging to the assessee. Therefore, we find no infirmity in the order of CIT(A). The addition made u/s 68 of the Act is deleted.
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