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2018 (12) TMI 458 - AT - Income TaxAddition on account of Rental income - addition on the statement of Shri. Anil Kashinath Khode given at the time of survey - addition based on diaries found in survey - Held that:- The impounded diaries are not prepared by the assessee but by third party and there is no signature of the assessee to even remotely suggest that the assessee has been paid rent by Shri. Kashinath Khemsa Khode for carrying out liquor business under the Excise Licence of the assessee. While it is true that admission is an important piece of evidence; unless corroborated, it cannot be said to be conclusive and it is open to the person who has made the admission to show that it is incorrect; which in my considered opinion has been successfully done in the case on hand. Before me, Revenue has failed to controvert the averments made in the Affidavits dated 19.11.2015 filed by the Khodes and the clarifications by the assessee and Shri. Kashinath Khemsa Khode and Shri. Anil Kashinath Khode in statements dated 17.03.2016 and 18.03.2016 respectively. In this factual matrix of the case, as discussed above, the additions made by the AO and upheld by the CIT(A) on account of Rent for Assessment Years 2011-12 to 2013-14 are hereby deleted. Disallowance of Excise Licence Fees paid - as per assessee assessee’s accounts have been audited u/s 44AB of the Act and the amounts in question have admittedly been claimed in the assessee’s accounts and therefore no disallowance can be made for want of challan - Held that:- as the assessee’s books of accounts have been audited u/s 44AB of the Act; copies of challans for payment of Excise Licence Fees to government are filed to corroborate the assessee’s claims for such expenditure and the fact that the assessee admittedly carried on the business of sale of liquor during the impugned Assessment Years 2012-13 and 2013-14, I am of the view that the same is allowable expenditure. In the light of the aforesaid evidence and in this view of the matter, the disallowance of the expenditure on Excise Licence Fee made by the AO and sustained by the CIT(A) is factually unsustainable - Decided in favour of assessee. Liable to be charged interest u/s 234B and 234D - Held that:- The charging of interest is consequential and mandatory and the AO has no discretion in the matter. This proposition is upheld by the in the case of Anjum H. Ghaswala [2001 (10) TMI 4 - SUPREME COURT] and therefore, the action of the AO in charging the said interest is upheld. The AO is, however, diverted to re-compute the interest chargeable u/s 234B and 234D of the Act, if any, while giving effect to these orders.
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