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2018 (7) TMI 365 - AT - Income TaxDisallowance on account of labour charges, misc. expenses and site expenses - Held that:- The assessee could not provide any satisfactory explanation regarding alleged the double claim of deduction on account of labour charges and also not provided any explanation in respect of other additions made on account of misc. expenses and site expenses. As observed from the record that the assessee claimed the expenses on self made vouchers and failed to substantiate its claim with material evidences. CIT-A was correct in restricting the disallowance to ₹ 2,00,000/-. We uphold the same and it is justified. Ground no. 1 raised by the assessee is dismissed. Addition on account of unexplained money - Held that:- It is noticed that the AO only doubted the creditworthiness of the said loan creditors by observing that all the creditors and donors have only normal balances in their bank accounts and said amount were deposited prior to giving the amount to the assessee. It is also noticed from the assessment order that the AO held that the loan creditors and donors have shown hypothetical income like misc. receipts. We find from record that the loan creditors were appeared before the AO under 131 proceedings and they have stated that they have vegetable and foria business since last 7-8 years. In respect of gift of ₹ 50,000/- we find that the AO did not make any adverse remark in respect of her capital account. In our opinion, the assessee has proved the identity, creditworthiness and genuineness of transaction of loan creditors and donor. The assessee also filed relevant documents in support of the transaction regarding identity, creditworthiness and genuineness of transaction before the AO/CIT-A. Therefore, addition made by the AO and confirmed by the CIT-A on this issue stands deleted. Addition made on account of sundry creditor - Held that:- Taking into consideration the submissions of the ld.AR and in the interest of justice, we deem it fit and proper to remand the issue to the file of AO for the same. The AO shall consider the issue afresh. The assessee is at liberty to file necessary details in respect of his claim and contention. The assessee is also directed to co-operate with the AO in the assessment proceedings for speedy disposal of the case as the A.Y involved in this appeal is very old i.e A.Y 2007-08. Ground of assessee’s appeal is allowed for statistical purpose.
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