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2020 (1) TMI 604 - AT - Income TaxExpenditure incurred and payment of rent pertaining to information centers - CIT(A) partly deleted the addition made by the AO on the total expenditure claimed by the assessee after restricting to 30% - HELD THAT:- Establishment of information centers, incurring of expenditure towards rent and salary is not in dispute, however, entire claim of the assessee cannot be allowed in absence of supporting documents, bills and vouchers etc., therefore, the addition is necessary and obvious on failure of assessee in producing the relevant documentary evidence in support of his claim - CIT(A) has confirmed 30% of the amount of claim of assessee which is excessive and seems to be unreasonable, therefore, we hold that in the interest of justice, to cover up the possible leakage of revenue the addition confirmed by the CIT(A) i.e. 30% of the total claim of the assessee is reduced to 15% and the AO is directed to recalculate the disallowance accordingly. Unexplained investment - HELD THAT:- Although the department has two documents in their hands for making addition in the hands of the assessee but without any other corroborative and substantive evidence. At the same time, as we have already observed that both the documents as relied on by the authorities below, contains mentioning of payment of ₹ 70 lakhs but it has been stated therein that “₹ 70 lakhs has been paid afterwards” and there is no positive evidence or material to establish that on which date or by whom this payment was made by the assessee or on behalf of the assessee to the seller (IPSAR). Therefore, in absence of such substantive evidence, we are compelled to hold that there was no over and above payment of ₹ 70 lakhs by the assessee to the seller. In this situation, when Dr. J.K.Mishra, Director of IPSAR (seller) in his statement before the AO categorically denied having received the amount of ₹ 70 lakhs over and above and there is no action against the seller by the department in this regard disbelieving his statement, thus, the socalled receivable of over and above money is denied having received the impugned amount. Hence, the action of AO loses its legs to stand on the platform of justified and reasonable cause for making addition. We have no hesitation to hold that neither the AO nor the CIT(A) by way of corroborative and cogent evidence could not establish and substantiate that the assessee has made payment of. ₹ 70 lakhs over and above consideration of ₹ 4,95,00,000/- as has been shown in the registered sale deed. Therefore, no addition in this regard is called for and, thus, we direct the AO to delete the entire addition. - Decided in favour of assessee.
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