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2023 (4) TMI 227 - ITAT DELHIAddition u/s 68 - non-submission of details of investors - Unexplained source of capital contribution - HELD THAT:- CIT(A) concluded that the source and the flow of funds in the hands of the partner/ capital contributor Shri Arvind Billa is clear and have been explained. Shri Arvind Billa had withdrawn the money from M/s AFFY Parenterals in which he was 80% partnership. The amount withdrawn from the partnership M/s AFFY Parenterals was duly received in the HDFC Bank account being the personal bank account of Shri Arvind Billa. It was from this bank account that the amount was received as capital contribution in M/S AFFY Food Tech LLP. From the details filed before the A.O., it was clear that the source / capacity/genuineness stand explained. It is also fact on record that Shri Arvind Billa duly appeared before the A.O. in remand proceedings. As such, all requirements at the end of appellant stand fulfilled. The A.O. has also confirmed this fact in his report - Addition as deleted by the ld. CIT(A) stands confirmed in the absence of any material contra brought before us. The appeal of the revenue on this ground is dismissed. Disallowance of Salary Expenses - no details were filed, the AO disallowed 75% of the salary expense - CIT(A) deleted the addition based on the report of the AO wherein the AO submitted that the requisite details were duly provided - HELD THAT:- As noted from the AO's report and from the assessee's submissions that the requisite details were duly provided to the A.O. at the time of assessment itself - there is no basis for ad-hoc disallowance of 75% of wages. A.O. has not pointed out in his assessment as to which 75% of wages were not incurred for purposes of business. CIT(A) Correctly deleted the addition based on the report of the AO wherein the AO submitted that the requisite details were duly provided. Hence, the addition made by the AO on the grounds that “no details were filed” cannot be upheld. The order of the CIT(A) is affirmed on this ground. Appeal of the Revenue is dismissed.
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