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2015 (1) TMI 959 - AT - Income TaxUnaccounted cash credit - Held that:- In the present case it is noticed that the assessee received the deposits from 62 persons in cash, those persons were produced before the AO and their statements were recorded wherein they confirmed the deposits with the assessee. The depositors also explained the source of their deposits which was the agricultural income and the income from salary or profession/business etc. The AO however did not accept the explanation of the assessee and also doubted the confirmation by presuming that the persons having the land holding of 2 to 3 acres each were not in a position to advance the deposits of less than ₹ 20,000/-. . In the instant case, it was explained that the assessee was dealing in Petroleum Products and the persons who were mainly agriculturists deposited the amount in cash to ensure the regular supplies of the Petroleum Products like diesel etc. which was required for the purpose of harvesting and sowing, the said explanation of the assessee was not rebutted at any stage. It, therefore, appears that the impugned addition has been made merely on the basis of surmises and conjecture. Therefore, the deposits in question were genuine and the addition made by the AO and confirmed by the ld. CIT(A) was not justified, we, therefore, delete the same. - Decided in favour of assessee. Additional income from Tanker not shown - Held that:- In the present case it is an admitted fact that the assessee maintained separate books of accounts for the tanker which were not rejected by invoking the provisions of section 145(3) of the Act. The AO disallowed 50% of the total expenses without any basis and the ld. CIT(A) also worked out the expenses on the basis of consumption of diesel but ignored other expenses like salary to the driver & the cleaner, repairs & maintenance, depreciation etc. In the present case the assessee received the reimbursement of the expenses on the basis of certain parameters fixed by the Petroleum Company those parameters were not doubted. The assessee received the transportation charges of ₹ 18,82,516/- claimed the expenses at ₹ 16,86,875/- which were much less than the reimbursement made by the Petroleum Company, the assessee after claiming depreciation of ₹ 1,52,275/- had shown the income from tanker at ₹ 43,867/- which was more than ₹ 42,000/- i.e. the income to be shown u/s 44AE of the Act, on that score also the disallowance sustained by the ld. CIT(A) was not justified. Thus order passed by the ld. CIT(A) on this issue and the addition of ₹ 3,60,199/- sustained by the ld. CIT(A) is deleted. - Decided in favour of assessee.
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