TMI Blog2015 (10) TMI 1624X X X X Extracts X X X X X X X X Extracts X X X X ..... s under challenge in these circumstances and reject the Revenue's first substantive ground. - Decided in favour of assessee. Unexplained cash credit - CIT(A) delted the addition - Held that:- The Revenue draws support from the assessment order doubtincreditworthiness of the abovesaid HUFs from whom the impugned deposit of ₹ 1 lac have come in assessee's account. The CIT(A) refers to their assessment records, books of account, interest charged along with TDS deducted and also sufficient capital balance for the purpose of advancing ₹ 60,000/ and 40,000/- to the assessee. The Revenue fails to rebut the said factual findings by referring to the case record available in the file. Thus, we affirm the CIT(A) findings accepting the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere assessee's related parties. 3. The assessee filed reply stating therein that its textile business activities were carried out mainly through brokers, its payees bills contained summary of sales as well, their duty was procurement of orders, monitoring of timely delivery, collection of payment, settlement of disputes and maintenance of business relations. The assessee stressed that the impugned brokerage was an established business practice. All these pleadings failed to impress upon the Assessing Officer. He observed in assessment order dated 13.12.2010 that the payee-agents had acted as stand alone brokers for assessee only without having any skills in the concerned field, termed the claim as bogus since all bills were in the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the claim of expenses was not genuine. The A.O. has relied only on doubts which may have come to his mind. Doubts can only be the starting points for an investigation but not conclusive evidence. In absence of any evidence to the contrary, the claim of the appellant which is based on evidence has to be entertained. The addition made is therefore deleted. This ground is allowed. 5. We have heard both sides and gone through the case file. The Revenue strongly supports the Assessing Officer's findings making the impugned disallowance of brokerage expenses. We have already narrated the Assessing Officer's reasons for disallowing the claim in question. The CIT(A) rightly points out that there is no dispute about the impugned payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of ₹ 1 lac as unexplained cash credits. 7. The CIT(A) has deleted the impugned addition as under: 3.2. I have gone through the facts of the case. All relevant details regarding the transactions of loan with Harshadbhai R. Pansuriya (HUF) and Rameshbhai R. Pansuriya (HUF) were before the A.O. These creditors were regular income-tax assesses, the loan given to the appellant was reflected in their accounts, the creditors had receivedinterest from the appellant after TDS, they had sufficient capital balance and income to advance small amounts of loan that they did. Further, the creditors had sufficient cash balance to make the deposit in the bank account. The appellant had therefore discharged its onus with respect to the identit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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