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2019 (11) TMI 1180 - AT - Income TaxUnexplained cash deposits - assessee failed to furnish material in support of source of income - CIT-A deleted the addition - HELD THAT:- CIT(A) has recorded a finding of fact on examination of the cash flow statement for the year under consideration, as also for the earlier two years and cross verifying it with the entries in the bank statements, find that the entries are recorded in the disclosed bank accounts of the assessee which showed that sufficient cash withdrawals were made by the assessee from his bank account to cover the cash deposit. This finding of fact made by the AO after examination of the cash flow statement for the year under consideration as also for the earlier two years after cross verifying it with the entries in the bank statement could not be dislodged by the departmental representative before us. In such a scenario, we are inclined to uphold the action of the CIT(A) and dismiss the ground of appeal of the revenue. Disallowance u/s. 17(3)(ii) - loan taken from two companies - HELD THAT:- CIT(A) has made a clear finding of fact that assessee is not an employee of the two companies namely, M/s. Rolls Print Co. Pvt. Ltd. and M/s. Rolls Print Graphics Pvt. Ltd. which finding of fact has not been challenged by the department before us and since the amounts taken has been admitted by the assessee as given by these companies as loan, the question of this amount falling in the ken of section 17(3)(ii) does not arise Assessee in subsequent year has repaid the said loan to both these companies. Therefore, the amount which the assessee had taken as loan from these two companies does not attract section 17(3)(ii) of the Act and the CIT(A)’s action on this score is upheld. Loan taken from the M/s. XPRT Engineered Packaging Solutions Pvt. Ltd., we note that assessee was a whole time director of the said company and has drawn salary from it. Therefore, once the assessee had drawn interest free loan from the said company where he was employed, what is chargeable to tax is only the perquisite value computed in the manner prescribed in Rule 3(7)(i) of the Rules, which is assessable under the head ‘salary’. We note that in the aforesaid scenario, the CIT(A) has directed the AO to assess/compute the perquisite value in respect of interest free loan granted by the M/s. XPRT Engineered Packaging solutions Pvt. Ltd. to the assessee in the manner prescribed under Rule 3(7)(i) of the Rules. We find that the action of the Ld. CIT(A) is as per law and need not be interfered with. Business loss derived from non-speculation transactions - HELD THAT:- CIT(A) has recorded a finding that since tax audit was conducted in the assessee’s case, the date of filing of return of income was 30th September and since the assessee had filed the return of income on 28th September the return of income was not belatedly filed; and he also found that the loss could not be qualified as Speculative, because it was incurred by the assessee in the trading conducted in derivatives and since the derivative trading was carried out through authorized members of the recognized Stock Exchanges, as per clause (d) of the Explanation to section 43(5) it did not constitute “Speculative transaction” which findings of the CIT(A) is valid and, therefore, the action of Ld CIT(A) in the facts is upheld. Revenue appeal dismissed.
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