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2022 (9) TMI 821 - AT - Income TaxUnexplained Cash deposit - CIT-A deleted the addition - HELD THAT:- Deposit of cash in the saving bank account is duly recorded in cash book of the assessee and is out of the business turnover of the assessee for which the income has already been offered in his regular return. DR placed heavy reliance on the order of the AO and could not bring anything on record to controvert the findings given by the CIT(A). No reason to interfere with the fact based finding given by the CIT(A) and uphold the deletion of addition. Accordingly, this ground of appeal of revenue is dismissed. Bogus sundry creditors - as submitted there is no cessation of liability by the assessee in respect of these creditors u/s. 41(1) of the Act - the inspector could not point out any specific vendors in his report who were not found during the inspectionHELD THAT:- T. DR, could not bring anything contrary to the submissions made by the Ld. Counsel and on the findings given by the CIT(A) and placed reliance on the order of the AO. From the documents placed on record, it emanates that these are all small vendors supplying perishable items viz. fruits, vegetables, milk, cheese etc. Considering the nature of expenses, trading results, sales, purchases and the gross profit, more particularly owing to the nature of business of assessee comprising of manufacturing and sale of sweets and confectionery, we do not find any reason to interfere with the decision and the findings given by the ld. CIT(A). Accordingly, the ground of appeal of the revenue is dismissed. Disallowance of payment of electricity charges in cash in violation of section 40A(3) - HELD THAT:- Considering the documentary evidence placed on record in the form of ledger statement and bills for electricity charges and submission made by the Ld. Counsel, we find it proper to remit this matter back to the file of Ld. AO for the limited purpose of verification to ascertain the fact relating to each bill paid separately and accounted accordingly by the assessee in his books of account. Based on this verification and by considering the findings given in the judicial precedents, AO is directed to rework the disallowance, if any, u/s. 40A(3) of the Act. The assessee is also directed to furnish the relevant records and details to assist the Ld. AO in completing the verification exercise. Accordingly, this ground of appeal by the revenue is allowed for statistical purposes. Subscriptions & donations which was not fully incurred for the purpose of the business - HELD THAT:- CIT(A) observed that in relation to have smooth business operation, assessee had to pay donation and subscriptions to various puja associations without which it would not be possible for him to maintain his business smoothly without any hindrance and treated these expenses as part of normal business activities and allowed the claim of the assessee by deleting the addition so made. Before us, Ld. Counsel reiterated the submissions and placed reliance on the decision of Ravi Marketing (P) Ltd.[2005 (1) TMI 20 - CALCUTTA HIGH COURT]wherein it was held that “whether an expenditure is expedient for the purpose of business is to be looked at by the income tax authorities or the Court from the view point of the assessee, not from it armchair. It is not for the Court or the Income Tax Authorities to suggest or advise to presume or surmise as to the expedience.” Considering the submissions made before us, we do not find any reason to interfere with the finding given by the ld. CIT(A) and affirm the deletion made thereon . Accordingly, ground of the revenue is dismissed.
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