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2022 (7) TMI 592 - AT - Income TaxUnexplained cash Deposits - persons who had given the money to the Assessee to book the flats and only because the confirmations were not received from respective builders they were disallowed - HELD THAT:- Where the Assessee claims to be inter-mediatory between the investors and the builders and some part of the admitted payments made by these investors were confirmed, then remaining amounts not confirmed by builder, can be explained, by assessee, if these unconfirmed amounts totaling 11.01,371, were deposited by way of cheques to the respective builders M/s. Gaursons Hi-Tech Infrastructure Pvt. Ltd and Supertech Ltd failed to confirm. Thus, it will be appropriate to allow this ground with a direction to the ld CIT(A) to give opportunity to the Assessee to establish that amount paid to these two builders was by way of cheques or other banking mode and if assessee succeeds to establish the fact, the remaining addition of Rs. 11,01,317/- as sustained by the ld CIT(A) shall stand deleted. Enhancement of income - Assessee argued that addition has been made without giving any opportunity of hearing - HELD THAT:- DR could not controvert this arguments. In the light of the aforesaid irregularity and violation of mandate of law, the issue is restored to the files of Ld. CIT(A) to give opportunity of hearing to the Assessee. Disallowance of 10% of total expenses - HELD THAT:- As based on the business activity carried on by the Assessee the ld CIT(A) had upheld disallowance of 10% of total expenses on adhoc basis. The same being without any reason to distinguish how remaining 90% is allowed, the same cannot be sustained. Hence, this ground is decided in favour of the Assessee.
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