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2019 (6) TMI 1127 - HC - Income TaxDisallowance of expenses - assessee has not produce any books of accounts and therefore, any claim made by the assessee remain unexplained - HELD THAT:- CIT(A) accepted all the contentions of the assessee and noted that the accounts maintained by the assessee in accordance with the method consistently followed and accepted by the Department for the last seven years and the same could not be rejected without there being any material change in the facts. When no specific defect or discrepancy has been pointed out by the authorities below in the audited books of accounts of the assessee then, no disallowance or 30% of total claim of expenses without any basis cannot be disallowed therefore, entire claim of the assessee may kindly be allowed Addition on account of bogus Sundry Creditors - HELD THAT:- AO has not brought on record any adverse finding or allegation to show that the impugned depositors/sundry creditors, in fact, did not represent the sale proceeds and represents the unaccounted income of the assessee shown in the balance sheet in the garb of sundry creditors on account of booking or allotment or sales of units/flats. Therefore, CIT(A) was right in holding that without any concrete material or evidence showing unexplained or unaccounted income of the assessee introduced in the cover of sundry creditors, the addition made by the AO merely on the basis of suspicion, presumption and assumption cannot be held as sustainable - addition/disallowance made on the basis of presumption and assumption is not sustainable and correct in view of the absence of concrete and sustainable allegation and evidence or adverse material against the assessee. Unexplained bank deposit - HELD THAT:- The amounts added and assessed as unexplained sundry creditors includes the impugned amount which was deposited to the three bank accounts of the assessee therefore, the same cannot be treated as unexplained bank deposits in absence of any adverse or positive incriminating evidence or material. Thus, we are inclined to hold that the findings recorded by the CIT(A) are quite correct and we are unable to see any valid reason to interfere with the same and hence, we uphold the same. No substantial question of law.
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