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2017 (3) TMI 885 - AT - Income TaxAddition on account of bogus purchases - Held that:- The report of AO was forwarded to the assessee for his reply / objections. The assessee filed its objection, in objection the assessee contended that no opportunity was given to the assessee to cross examine the vendors. The assessee further contended that he submitted a letter dated 21.01.14 and 22.01.14 and the AO overlooked the documents while furnishing the remand report. After considering the contention of the assessee and remand report the Ld. CIT (A) rejected the admission of additional evidence. Though the ld CIT(A) himself directed the assessee to file certain evidences. The ld CIT (A) not considered the evidences which was filed in compliance of his direction. We are of the considered opinion that ld CIT(A) wrongly rejected the admission of additional evidence. Hence, we admit the additional evidences filed by the assessee and remand this ground of appeal to the file of AO to consider the issue afresh and pass order in accordance with law. Disallowance under section 80G - Held that:- We have seen the assessee’s letter dated 29.01.10 while giving the cheque of donation. The assessee has clearly mentioned that the donation may be treated as donation to the corpus fund/interest. The donation was made during the validity of certificate under section 80G in favour of Dr. D.Y. Patil University. We have perused the provisions of section 80G of the Act. On perusal, we do not find any condition wherein the donor may be held disentitled for the benefit of section 80G in case his relative or dependent is getting education in the institution where the donation is made. In our view, the AO wrongly made his conclusion that expenses was made by partner for securing admission of his son and was claimed as a deduction by showing the amount as donation. Thus, we delete the disallowance made under section 80G of the Act - Decided in favour of assessee Disallowance of interest expenses paid to partner - Held that:- AO disallowed the interest holding that payment of ₹ 30 lakhs paid on account of gift represents the personal expenses of partner as the same was disallowed by him. Since the amount of gift was disallowed, therefore the interest for two month on ₹ 30 lakhs which was worked out at ₹ 60,000/- was disallowed. The Ld. CIT(A) confirmed the disallowance of interest holding that the claim of 80G is sustained in appeal and thus it was not a personal drawing of the partner. As we have already allowed the claim of deduction under section 80G and reversed the finding of AO that drawing of ₹ 30 lakhs was not personal expenses of the partner, thus the disallowance of interest expenses is also deleted. - Decided in favour of assessee
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