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2014 (5) TMI 1150 - ITAT MUMBAIAddition towards Transportation Charges - unserved notices as parties were not available on the addresses given by the assessee - genuine expenditure - Held that:- It is not disputed that the assessee had furnished proof of actual performance of transportation work, lifting of waste, payments of TDS, full addresses of the parties, confirmation of account with PAN and mode of payment. By giving such details, in our opinion, assessee had discharged its initial burden of proof. If AO had doubt about the genuineness of transaction or payment, he should have made further inquiries and should have confronted the assessee with the result of such inquiries. Assessee was awarded contract by MCGM for lifting solid waste and was paid for it by the corporation. It had hired sub-contractors to carry out job assigned by the Municipal Corporation. As per the terms of contract assessee had to get the vehicles used for lifting wastage with RTO. Inquiry with RTO/ MCGM would have brought truth in light. It is true that letter issued by the AO remained unserved, but that factor alone should not result in addition of Rupees more than two crores. Non service of notices issued by the AO was the starting point to investigate the matter further. But, the AO chose to stop there and ignored the documentary evidences produced by the assessee. In these circumstan -ces, we are of the opinion that the order of the FAA does not suffer from any legal infirmity - Decided in favour of assessee Addition u/s. 68 - unexplained unsecured loans - establish the capacity, genuineness and proper identity of creditors - Held that:- Two of the creditors not only had appeared before the AO, but had also admitted of giving loan to the assessee. AO has not pointed out any abnormality in their statements. In these circumstances, there was no reason to make addition for the sums appearing in their names. From the order of the FAA it is clear that Shantiben Shah and Charmi A Mehta had capacity of advancing loans to the assessee and they were regular tax payees. Thus, FAA has conclusively proved that identity of the creditors, genuineness of the transaction and capacity to advancing loan cannot be doubted. - Decided in favour of assessee
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