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2018 (5) TMI 136 - AT - Income TaxAdditions towards interest on capital - CIT dismissed the appeal of the assessee holding that the admission of interest income in the hands of the individual partners shall not determine the allowability of interest expenditure and the relevant factor to allow the interest on capital is whether capital introduced is genuine or not - Held that:- In this case, in the preceding paragraphs, we have sustained the addition upheld by the CIT(A) since the assessee failed to establish the sources for introduction of capital by the partners in the hands of the firm. Therefore, the interest payment relating to the addition confirmed as unexplained cash credit in the hands of the firm is not allowable and the same is to be treated as income in the hands of the firm as unexplained sources. Therefore, we do not find any infirmity in the order of the Ld.CIT(A) and the same upheld. The appeal of the assessee on this issue is dismissed. Disallowance of 20% of expenditure attributed to trailors and vans - Held that:- The assessee could not produce vouchers to the extent of the above expenditure. The assessee has maintained the regular books of accounts which are subject to audit u/s 44AB of I.T.Act . The assessee also produced the books of accounts before the AO and it is also common as observed by the Ld.CIT(A) that in the transport business various expenses are incurred by truck, lorry drivers during the journeys undertaken by them, do not maintain proper vouchers but mostly self made vouchers. - Decided against assessee. Depreciation on trailor No.2D6699 - AO allowed 50% of the depreciation since the trailor bearing No. NLO 2D 6699 was put to use less than 180 days and registered on 15/12/2008 - CIT(A) confirmed the addition since the assessee failed to produce the bills for purchase of trailor in the Financial year 2007-08 - Held that:- During the appeal hearing, the Ld.AR did not furnish any evidence to controvert the findings of the CIT(A). Therefore, we do not find any reason to interfere with the Ld.CIT(A) and appeal of the assessee on this ground is dismissed.
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