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2019 (12) TMI 972 - AT - Income TaxAddition u/s 68 - Unsecured cash credit - HELD THAT:- CIT(A) found a reconciliation of fund flow, and thereafter observed that addition under section 68 was not required to be made in the hands of the assessee. CIT(A) has recorded a finding of fact that nothing has been retained by the assessee, which has been considered as unexplained cash credit. The assessee has explained fund flow i.e. demonstrating transactions were back to back, and were in the nature of accommodation entries. Characterization of income - CIT(A) has held that alleged ₹ 1,57,10,000/- was not earned from any business activity but from other sources of income - Contrary to the above factual finding of the ld.CIT(A), neither Revenue has filed any evidence, nor assessee has filed any paper book. It has not been brought to our notice, as to how these analyses are contrary to the record. Therefore, we are of the view that the ld.CIT(A) has made a lucid analysis of the record available before her, and appreciated the controversy in right perspective. We do not find any merit in the ground of appeal raised by the Revenue challenging deletion of ₹ 9.33 crores as well as ground of appeal raised by the assessee pleading therein that the income of ₹ 1,57,10,000/- ought to have been assessed as “business income” instead of “income from other sources”. Not to grant set off of unabsorbed depreciation and business loss from granite business under the head “income from business” - We do not find any merit in this ground of appeal, because, the ld.CIT(A) has rightly observed that the income of ₹ 1,57,10,000/- is not a income from any regular source of business, rather it is income from other sources, and therefore, it would not qualify for grant of set off. No details have been supplied by the assessee before us in this regard. Retaining income which was offered to tax by the appellant - CIT-A not restricting the same at loss from rotation of funds in the guise of software business by ignoring the principles of real income theory - HELD THAT:- Since no explanation was furnished by the assessee regarding this entry, the same was treated non-genuine and made addition to that extent and worked out a total addition of ₹ 20,99,934/-. However, the ld.CIT(A) observed that since the assessee has already offered an income of ₹ 45,53,000/- in the books of accounts, which is more than the addition worked out, no separate addition was required. Accordingly, the ld.CIT(A) restricted the addition to ₹ 45,53,00/- which was disclosed by the assessee in the return of income. To contradict finding of the ld.CIT(A), there is nothing placed before us by the assessee either in the form of explanation or in the form of paper book. Therefore, we do not find any merit in the grounds of appeal of the assessee. It is rejected.
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