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TMI Blog2015 (6) TMI 203X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(A) has erred in law and on facts in deleting the addition of Rs. 10,00,000/- made by the Assessing Officer on account of investment in FDR. 3. On the facts and in the circumstances of the case, the CIT(A) has erred in law and on facts in deleting the addition of Rs. 11,05,000/- made by the Assessing Officer on account of loan given to Smt. Rita Dhingra. 4. On the facts and in the circumstances of the case, the CIT(A) has erred in law and on facts in deleting the addition of Rs. 7,52,522/- made by the Assessing Officer out of the drawing for personal expenses. 5. On the facts and in the circumstances of the case, the CIT(A) has erred in law and on facts in deleting the addition of Rs. 1,44,000/- made by the Assessing Officer on count o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the same A.O., therefore, the fact of having given loan by Smt. Rita Dhingra to the assessee was verifiable form the records available with the Revenue authorities. Ld. A.R. heavily relied upon the order of Ld. CIT(A). 4. We have heard rival parties and have gone through the material placed on record. We find that Ld. CIT(A) has allowed relief to the assessee on various additions after obtaining remand report and after discussing the objections of A.O. on merits. Therefore, there is no relation of provisions of Rule 46A, therefore, ground No.6 taken by Revenue is dismissed. As regards merits for deletions made by Ld. CIT(A), he has deleted the same by holding as under:: "5.3 Finding on Ground No. 3: I have considered the observatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ash balance on some other activities, I allow a relief of Rs. 6,63,300/-." 6.3 Finding on Ground No.4. I have considered the entire material available in the form of observation in the assessment order and the submissions of the appellant and the remand report and rejoinder of the appellant thereon. From the brief discussion in the assessment order, I find that the only reason given by the AO is that FDR is not reflected in the statement of affairs of the appellant as on 31/3/05. I find that in the next ground there is contention raised on behalf of the appellant that the said FDR was handed over to the wife for availment of credit facilities from bank and therefore, the amount of FDR was debited to the account of wife of appellant, Mrs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the contentions raised. It is clear that the AO has in the remand report contested the addition of Rs. 10,00,000/- out of Rs. 11,05,000/- made by him for the loan/advance made to Mrs. Rita Dhingra. The confirmation of Mrs. Rita Dhingra is on record which proves that FDR of Rs. 10 lakhs has been credited by her in the ledger account in favour of the appellant. It could be matter of dispute whether handing over FDR could result into a valid loan/advance. But the validity of loan/advance is not the issue under dispute. The dispute really is whether this transaction has any element of transfer of funds, source of which remains to be explained. Considering the ledger account submitted from the books of Mrs. Rita Dhingra, the loan transactio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... els is available at page 18 of the paper book, wherein the above cheque with the same number is debited "in the account of the appellant in the above firm. There is a cash deposit of Rs. 5 lakhs in the bank account on 29/7/04 which is verified by me from the cash book of G&J Apparels produced before me on requisition. The AO's observation in the remand report that the source of the above insurance policy is the cheque no. 394888, dated 23/6/04 of Rs. 5 lakhs is not correct as the said credit entry is independent of the above transaction against the opening outstanding debit balance of Rs. 21, 12,719.15 as on 114/04. So far as the payment of the premium is concerned, there is absolutely no doubt about the source of above expenditure. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w of above, I find that there is no difference in the accounted personal expenses as per the information given during assessment proceedings and therefore, source of the above personal expenses stand explained in view of reconciliation of cash flow statement. Regarding the balance amount of Rs. 1,29,521/-the AO has not raised any objection on the appellant's explanation in his report. It is observed that this balance amount for Rs. 1,29,521/- consists of LIC Premium for Rs. 1,07,4711-; mediclaim insurance for Rs. 17,995/- and Travel Insurance for Rs. 4055/-. All these payments have been made through cheques from the Account of G&J Apparels and are, therefore, explained. I therefore allow this ground of appeal and the AO is directed to d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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