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2018 (11) TMI 631 - ITAT DELHIAddition on account of capital contributed by the assessee - accumulation of any agricultural income - Held that:- No evidence of accumulation of any agricultural income have been filed by assessee. CIT(A) without any basis of dairy business, accepted the explanation of assessee. CIT(A) despite noting the return for preceding assessment year 2008-2009 was filed simultaneously would show that it was filed with purpose to show opening capital balance on the assessment year under appeal. CIT(A) merely on giving benefit of doubt, accepted the explanation of assessee, therefore, the totality of the facts and circumstances would show that the Order of the CIT(A) cannot be sustained in law. The matter requires reconsideration. Set aside the impugned order and restore this issue to the file of CIT(A) with a direction to re-decide this issue strictly on the basis of merits and evidence available on record. CIT(A) shall give reasonable and sufficient opportunity of being heard to the assessee and the A.O. Ground No.1 of appeal of Revenue is allowed for statistical purposes. Cash payment u/s 40A(3) - Held that:- No interference is called for in the matter. Though in assessment year under appeal, CIT(A) has no power to set aside the issue to the file of A.O. but it is specific that the A.O. has not dealt with the submissions of the assessee as what was pleaded before him. Therefore, ultimately the matter would require reconsideration at the level of the A.O. Though we do not approve the Order of the CIT(A) in remanding the matter to the file of A.O. however, while setting aside the Order of the CIT(A), we direct the A.O. to examine this issue afresh in the light of material available on record. A.O. shall give reasonable and sufficient opportunity of being heard to the assessee. Accordingly, Ground No.2 of appeal of Revenue is allowed for statistical purposes. Addition on account of unsecured loans - Held that:- Bogus transaction and all documents are created and fabricated by assessee to rotate her unaccounted money through the alleged transactions of gift or loans. CIT(A) without verifying the facts and circumstances of the case and evidence on record, without any justification deleted the addition. The findings of the CIT(A) are perverse in nature and are liable to be set aside. Since assessee failed to prove the identity of the creditors, their creditworthiness and genuineness of the transaction in the matter, therefore, there is no reason for the A.O. to make further enquiry into the matter. A.O. has rightly rejected the explanation of assessee. CIT(A) was, therefore, not justified in deleting the entire addition without there being any evidence in support of explanation of assessee. We, accordingly, set aside the Order of the CIT(A) and restore the Order of the A.O. In the result, part of Ground No.3 of the Department is allowed. Unexplained cash credit on account of purchases, application fee and cost of furniture and cash in hand - Held that:- Since the issue of opening capital balance, loans etc., have been restored to the file of Ld. CIT(A) and loan of ₹ 12,90,000/- has been confirmed by us above, therefore, this issue requires reconsideration at the level of the Ld. CIT(A). The finding on the other grounds would be relevant for the purpose of disposal of this ground. We, accordingly, set aside the Order of the Ld. CIT(A) and restore this issue to his file with a direction to re-decide this ground of appeal afresh on merits by giving reasonable and sufficient opportunity of being heard to the assessee and A.O. Ground No.4 of appeal of Department is allowed for statistical purposes.
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