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2020 (2) TMI 25 - AT - Income TaxDisallowance of expenses - failure to disclose the income from carrying out business of providing transport service - HELD THAT:- It is true that assessee has not shown the business receipts and income under the head business income but this reason alone cannot preclude to assessee for claiming incidental expenses incurred for carrying out business. Though, assessee has declared 6.28% net profit rate on the transport business on the gross receipt of ₹ 19,88,592/-, we in the interest of justice and being fair both the parties and looking to the fact that books of accounts are not audited, are of the considered view that estimating of net profit @ of 8% of the gross receipts of ₹ 19,88,592/- i.e. ₹ 1,59,087/- will be justified. Accordingly additions of disallowance of expenses of ₹ 18,63,552/- is sustained only to the extent of ₹ 34,047/-. - Decided partly in favour of assessee. Unexplained gift received from mother-in-law and father of the assessee - HELD THAT:- We are satisfied with the identity genuineness, creditworthiness of the donor Smt. Urmila Jain who is a mother-in-law of the assessee and thus, find no reason to doubt the genuineness and creditworthiness of the gift at ₹ 10 lacs. Accordingly, addition made u/s 68 of the Act to be deleted. Cash gift received from assessee’s father as donor has expired after signing an affidavit for the gift given to his son, find no justification in the action of the Ld. AO making the addition for unexplained investment u/s 69 of the Act, since the assessee has duly explained the source of ₹ 2,50,000/- being receipt from his father. Accordingly addition u/s 69 of the Act is deleted - Decided in favour of assessee
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