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2017 (8) TMI 713 - ITAT MUMBAIAddition u/s 68 - unexplained cash credit - prove the identity, credit worthiness and genuineness of the transaction - Held that:- Where the assessee has discharged its burden of proving the nature and the source of cash credit, the Assessing Officer shall make the addition u/s. 68 in the income of the assessee. We have already held that the explanation given by the assessee, in our opinion duly prove the identity, credit worthiness and genuineness of the transaction. It is not the case of the assessee that it has not offered any explanation. It is a case where the assessee has duly offered explanation, explaining the nature of source of the amount borrowed by it.In view of these facts, we set aside the order of the CIT(A) and delete the addition made u/s. 68 of the I.T.Act. - Decided against revenue. Addition u/s. 37 on repairs and maintenance account - Held that:- Revenue not able to bring to our knowledge any cogent material or evidence which may prove that the Assessing Officer has called for details of the bills/vouchers from the assessee, therefore, we are of the opinion, that the CIT(A) has rightly deleted the addition. - Decided against revenue. Addition of travelling, conveyance and telephone expenses - Held that:- We do agree assessee that the disallowance made by the Assessing Officer are merely adhoc disallowance. The assessee is a private limited company. There cannot be personal expenses in case of an incorporated company. Our aforesaid view is duly supported by the decision of Hon’ble Gujarat High Court in the case of Sayaji Iron And Engg. Co. vs CIT [2001 (7) TMI 70 - GUJARAT High Court]. Even otherwise, we noted that the assessee has submitted before the Assessing Officer copy of the ledger account showing details of these expenses. The Assessing Officer never asked for bills/vouchers from the assessee. No cogent material or evidence was brought to our knowledge by the learned DR to prove that the Assessing Officer has given opportunity to the assessee to produce bills/vouchers in respect of the aforesaid expenses. We, therefore, confirm the order of the CT(A) and delete the disallowance.- Decided against revenue. Disallowance u/s. 14A read with Rule 8D - no satisfaction being recorded by the Assessing Officer as required/s. 14A(2) before rejecting the claim of the assessee - Held that:- Assessing Officer can determine the amount of the amount of the expenditure incurred in relation to the income which does not form part of the total income in accordance with the method as may be prescribed. Rule 8D has been prescribed in this regard but the Assessing Officer can made such disallowance only if he is not satisfied with the correctness of the claim of the assessee having regard to the account of the assessee in respect of such expenditure in relation to the income which does not form part of the total income. Therefore, it is necessary on the part of the AO to record the satisfaction that the claim made by the assessee is not correct or incorrect and the satisfaction must be recorded having regard to the account of the assessee. In the instant case, we noted that the Assessing Officer without recording any satisfaction just rejected the claim of the assessee. We noted that the Assessing Officer has not recorded any dissatisfaction while disagreeing with the assessee in respect of the expenditure incurred by the assessee relating to the income not forming part of the total income. - Decided against revenue.
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