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2023 (6) TMI 916 - ITAT DELHIAddition u/s 40A(3) - assessee failed to furnish the documentary evidence like bills or mode of payment - assessee did not furnish the bank account details relating to the direct expenses made on the purchase of construction material - CIT(A) deleted the addition on the grounds holding that the books of accounts have been produced before the AO, the payments of amounts in cash over the specified limit has not been established and there was no basis for ad-hoc disallowance of 30% - HELD THAT:- Since, the order of the ld. CIT(A) is on sound rationale, we decline to interfere with the order of the ld. CIT(A). Disallowance of Interest expenses - business nexus of interest expenses can never exist - CIT(A) deleted the addition holding that, the order of the AO is cryptic, the assessee has not purchased any property as alleged by the AO, there is no justifiable ground to disallow the interest expenses as the assessee has earned taxable income and doing regular business - HELD THAT:- There were no evidence brought on record by the AO to prove that the amount has been utilized for personal purpose and other than business purpose. Hence, we decline to interfere with the order of the ld. CIT(A). Purchase of flat in cash - HELD THAT:- Apparently, the revenue itself is not very sure of the receipt of the cash nor there was any evidence. The ld. CIT(A) deleted the addition holding that there was no basis for such allegation. Hence, we decline to interfere with the order of the ld. CIT(A). Bogus Purchases, Sundry Creditor - HELD THAT:- The books of accounts of the appellant which are audited have been duly accepted. We find that the A.O has no basis to disallow purchases made from this parties as bogus in this year, when the existence of the seller has not been denied and continuing transactions from this year have been accepted as genuine in the subsequent year. Assessee has failed to discharge the primary onus of proving the purchases as genuine against the discrepancies found out by the AO viz., the signature and mismatch of the credit balances. Hence, we remand the matter to the file of the AO to provide an opportunity to the assessee to submit the relevant documents with complete details. The appeal of the assessee on this ground is allowed for statistical purpose.
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