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2023 (10) TMI 190 - AT - Income TaxAddition u/s 68 - bogus unsecured loans and bogus interest expenses claimed on such loan - applicant had not satisfactorily established the identity, creditworthiness and genuineness of the transaction - CIT(A) deleted the addition - HELD THAT:- Assessee has placed complete details including PAN Nos., bank account statements, financial statements and income tax details of each of the cash creditors. The ld. Assessing Officer has not indicated any discrepancy in any of these details. CIT(A) has also examined each of the cash creditors in detail including the fact that in some of the cases there are cash creditors who had already advanced funds for the assessee in the preceding year and some fresh loans have been taken. Interest has been paid through banking channels and tax has been deducted at source. AO failed to bring any adverse material against the assessee and the loan borrowed. Most of the unsecured loans have been repaid in the subsequent period. We, thus are of the considered view that the ld. CIT(A) after examining the facts of the case and giving finding of fact that the assessee has explained the nature and source of alleged sum and has proved the identity and creditworthiness of the cash creditors and genuineness of the transactions and further placing reliance on the judgement of Dataware Pvt. Ltd.[2011 (9) TMI 175 - CALCUTTA HIGH COURT], Sophia Finance Ltd. [1993 (8) TMI 62 - DELHI HIGH COURT] and Ayachi Chandrashekhar Narsangji [2013 (12) TMI 372 - GUJARAT HIGH COURT] has rightly deleted the addition made by the Assessing Officer under section 68. Disallowance u/s 14A - HELD THAT:- As only investment made by the assessee firm in mutual funds is at Rs. 5,00,000/-. During the appellate proceedings before the ld. CIT(A), prayer of the assessee was to direct the Assessing Officer to verify the claim of the appellant in view of the decision of M/s. REI Agro Ltd. [2013 (12) TMI 1517 - CALCUTTA HIGH COURT] - Considering the same, we fail to find any infirmity in the finding of the ld. CIT(A) in restoring the issue of disallowance under section 14A to the assessing officer for necessary verification - Ground raised by the revenue is dismissed. Adhoc disallowance made @ 20% - CIT(A) has confirmed the said disallowance observing that the expenditure being personal nature cannot be ruled out - HELD THAT:- It was the assessee who had to raise such ground but there is no appeal filed by the assessee and it seems that the revenue has inadvertently raised a wrong ground challenging the finding of the ld. CIT(A) even though it has been decided in favour of the revenue. Thus, Ground raised by the revenue becomes infructuous and the same is dismissed as such.
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