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2018 (10) TMI 866 - AT - Income TaxAddition u/s. 68 of customer’s Advances received against booking of motor cycles - Held that:- At the time of hearing before us, the Ld. AR of the assessee brought to our notice that the books of account duly audited by assessee has not been rejected by the AO and the AO has made the ad hoc disallowance u/s. 68 of the Act, which is arbitrary exercise of power and has to be deleted. Moreover, it has been brought to our notice that in assessee’s own case the Tribunal’s order for AY 2010-11 [2015 (10) TMI 2181 - ITAT KOLKATA] wherein the AO made similar addition u/s. 68 of the Act and the said addition was deleted by the Tribunal. This action of the Tribunal has been upheld by the Hon’ble jurisdictional High Court [2016 (6) TMI 115 - CALCUTTA HIGH COURT]. The action of the Ld. CIT(A) cannot be sustained. We also note that in this case, the claim of the assessee is ₹ 3,69,74,806/- whereas the AO has disbelieved ₹ 60,00,000/- which is an ad hoc disallowance without rejecting the audited books of account which is an arbitrary exercise of power which action of the AO/Ld. CIT(A) cannot be countenanced. - Decided in favour of assessee.
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