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2020 (2) TMI 943 - AT - Income TaxBogus purchases - disallowance of labour and wages expenses - most of the bills & voucher were missing and some were self generated - HELD THAT:- In the instant case, the ld.CIT(A) has deleted the addition basically on the ground that no specific instance of missing bills or self-made vouchers was mentioned by the AO and going by the general principles, he deleted the addition, therefore, the same, in our opinion, is not proper. For claiming any expenditure as allowable business expenditure, the onus is always on the assessee to substantiate with evidence to the satisfaction of the AO regarding the genuineness of such expenditure incurred wholly and exclusively for the business. Since the assessee, in the instant case, has failed to discharge the onus cast on it before the AO and the ld.CIT(A) has deleted the addition merely on the basis of the statements made by the assessee without giving any opportunity to the AO for his comments, therefore, we deem it proper to restore the issue to the file of the CIT(A) with a direction to grant an opportunity to the AO to go through the various details filed by the assessee and offer his comments and the CIT(A) shall decide the issue thereafter as per fact and law, after giving due opportunity of being heard to the assessee. We hold and direct accordingly. Grounds No.1 and 2 are accordingly allowed for statistical purposes. Addition on account of interest on TDS - HELD THAT:- Following the decision of the Hon’ble Karnataka High Court in the case of CIT vs. Oriental Insurance Company Ltd. [2008 (10) TMI 230 - KARNATAKA HIGH COURT] deleted the addition. The ld. DR could not controvert with any evidence so as to take a contrary view than the view taken by the ld.CIT(A). Since the ld.CIT(A) has deleted the addition basing on the decision of the Hon’ble Karnataka High Court, therefore, we do not find any infirmity in the order of the CIT(A) on this issue. Undisclosed gross receipt - HELD THAT:- CIT(A), while reducing the addition from ₹ 44,21,688/- to ₹ 4,94,250/-, has verified each and every entry and has given a factual finding which could not be controverted by the ld. DR. Since the order of the CIT(A) is based on factual aspect which remains uncontroverted by the Revenue, therefore, we find no infirmity in the order of the CIT(A) reducing the addition - Decided against revenue
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