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2017 (12) TMI 1333 - AT - Income TaxUnexplained cash deposits in the bank accounts of assessee - Held that:- Where the lenders had admitted to have given the advances and where the assessee had given complete information to prove the availability of sources of cash in the respective hands, the same cannot be brushed aside on some presumptions and conjunctures. After going through the evidences filed by the assessee, we find no merit in the orders of authorities below in holding that the assessee has failed to furnish complete data to explain the source of cash deposited in Loknete Dattaji Patil Sah. Bank account. Thus we find no merit in the stand of Assessing Officer and the same is reversed. Accordingly, accepting the explanation of assessee in this regard, we delete the addition of ₹ 10,05,200/-. The grounds of appeal No.1 to 5 are thus, allowed. Disallowance made under section 40(a)(ia) claiming the said interest has been paid to the father of assessee - Held that:- The provisions of section 40(a)(ia) of the Act have been brought in force to control evasion of tax by claiming various expenditure under the garb of carrying on the business. However, where the assessee has paid the said interest to the related party, the said amount cannot be disallowed on the ground of non deduction of tax at source. We are allowing the plea of assessee on this limited issue and this decision of ours shall not be used as precedent. The ground of appeal No.6 raised by the assessee is thus, allowed.
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