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2020 (11) TMI 364 - ITAT AHMEDABADAddition u/s. 14A - AO stated that assessee has shown exempt income as dividend of ₹ 3,35,994/- from investment made in shares and securities and claimed interest expenditure of ₹ 10,28,811/-. - HELD THAT:- AO has incorrectly taken exempt income as ₹ 3,35,994/- while disallowing ₹ 14137/- u/s. 14A of the Act. However, the amount of ₹ 3,35,994/- was represented as investment made by the assessee as on 31-03-2010. From paper book furnished by the assessee comprising annual account showing investment of ₹ 4,12,451/- and as on 31st March, 2009 and investment of ₹ 3,35,994/- as on 31st March, 2010. The total exempt income of dividend was shown at ₹ 4,206/- only. The assessee has not furnished any other evidences to substantiate that no expenditure including administrative expenditure was incurred towards earning except income. We observe that lower authority has incorrectly computed the disallowance u/s. 14A r.w.r. 8D of the Act, therefore, we restrict the disallowance to the extent of dividend income of ₹ 4,206/- earned by the assessee. Accordingly, this ground of appeal of the assessee is partly allowed. Addition u/s. 69 - assessee has made investment in immovable property jointly - share of the assessee in the property was of 50% - CIT(A) has partly allowed the appeal of the assessee - HELD THAT:- We observe that assessee had tried to explain the part investment made out of ₹ 76 lacs in the earlier years which had already been deleted by the ld. CIT(A). However, in respect of payment made during the previous year relevant to the year under consideration, the assessee had only explained the source of payment of ₹ 10 lacs out of the total amount of payment of ₹ 32,82,528/-. - no error in the decision of ld. CIT(A) in restricting the addition to the extent of ₹ 22,85,528/- since the assessee had failed to substantiate the source of this investment during the year under consideration. Accordingly, this ground of appeal of the assessee is dismissed. Addition u/s. 68 - Unsecured loan taken from various parties - CIT(A) has restricted the addition to the extent of loan amount of ₹ 2,55,500/- obtained by the assessee during the year under consideration - HELD THAT:- As gone through the paper book furnished by the assessee comprising copies of confirmation letter, identity of the lender, ledger account of the depositors placed at pages 50 to 99 of the paper book. However, the Assessing Officer has not made any verification and inquiry to disprove the correctness of the information furnished by the assessee. CIT(A) has also not given any reasons and findings in support of his decision to restrict the addition in respect of loan amount of ₹ 2,55,500/- obtained during the year under consideration. We consider that the decision of ld. CIT(A) is not justified, therefore, this ground of appeal of the assessee is allowed.
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