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2020 (6) TMI 694 - AT - Income TaxAddition on account of capital - gifts received from relatives - HELD THAT:- CIT (A) has correctly accepted and found it correct regarding the amounts received as gifts from husband and from her father-in-law. CIT (A) confirmed the remaining amount owing to non-substantiation of the amounts received. Addition of loan - HELD THAT:- AO had doubts in his mind about the genuineness of these creditors and therefore provided an opportunity to the appellant to substantiate her claim by producing the respective creditors. The process of confirmation by post was initiated only to facilitate the appellant but even this exercise has resulted in confirmation of credits in respect of the aforesaid four persons. Each credit appearing in the Books of Account has to be substantiated by the appellant with the help of cogent and convincing evidence. In the present case, despite number of opportunities given to the appellant there has been no compliance. The letters issued by the Assessing Officer has remained un-served or has not been responded by the respective creditors. In some cases, as mentioned above, even though the letters have been responded but the credit balance are different which would mean that the confirmations are not reliable. The appellant gets relief of ₹ 35,00,000/- in respect of the aforementioned four creditors out of the total credit amount of ₹ 1,07,00,000/- and the balance amount of ₹ 72,00,000/- is confirmed. Addition of sundry creditors - HELD THAT:- Appellant failed to discharge initial onus' of proving genuineness of its sundry creditors. Even during enquiry by the AO and this office only three creditors confirmed balance. In consideration of the facts above, out of total addition of rupees ₹ 67,07,216/- on account of sundry creditors, the appellant gets a relief Addition of commission paid owing to the absence of details of the persons to whom the commission has been paid - HELD THAT:- The appellant merely claimed that evidence has been lost in tire but at the same time she could have led secondary evidence by producing such parties and obtaining details from such parties about the payment of the said sum. The initial onus has not been discharged because by merely providing list no fruitful enquiry can be conducted until and unless further details are given. These agents were allegedly in fiduciary relationship with the appellant and it was much easier for her to obtain confirmation of accounts from the said agents. She has not taken any such steps and therefore prima facie genuineness of expenditure is in doubt. Further, the business purpose of the expense has also to be demonstrated besides the payment which is missing in this case because none of the agent has been examined by the appellant. Under these circumstances the AO has correctly disallowed the expense claimed Disallowance of Advertisement expenses - HELD THAT:- We find from the record that the assessee has not produced any evidence to support the claim of expenditure. In the absence of any evidences or proof submitted by the assessee, these expenses cannot be allowed as utilized for the purpose of business. The order of the ld. CIT (A) is confirmed on this ground.
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