9911796707
TMI Blog2016 (1) TMI 796X X X X Extracts X X X X X X X X Extracts X X X X ..... (A) has erred on facts and in law and in the circumstances of the case in deleting the addition of unsecured loans of Rs. 8,64,500/- taken from Smt. Veena V Shah and of Rs. 8,49,360/- from Business Communication as unexplained Case Credits u/s 68 of the I.T. Act, 1961". 2. The brief facts are that, the assessee is an individual who is engaged in the business of arranging seminars and educational lectures etc. In the Balance sheet, the assessee had shown unsecured loans of Rs. 32.13 lakhs. Before the AO in response to the show cause notice, the assessee could furnish the details of unsecured loans to the extent of Rs. 23,64,500/- i.e., loan taken from Smt. Veena V Shah of Rs. 8,64,500/- and from M/s Sarthak Developers of Rs. 15 lakhs. For ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso before the AO and further the confirmation of loan account of the assessee along with the bank account statement was filed before CIT(A). Since additional evidences were filed by the assessee for the first time, the matter was remanded to the AO, along with the written submissions of the assessee. In response, the AO submitted his remand report, the relevant content of which have been reproduced in para 2.3 on pages 4 & 5 of the appellate order. 4. After considering the assessee's submissions, evidences on record and remand report of the assessee, the Ld. CIT(A) observed that, unsecured loan by the assessee are from the close relatives i.e. mother and sister-in-law. The confirmations have been filed giving all the details of mode of tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bank, Andheri(W) Branch, Mumbai. The bank has further certified that due to the problems faced in their main server the duplicate statement of the account for this period cannot be issued. However, the bank has certified that cheques of Rs. 8,40,000/- dated 23.02.2007 and of Rs. 24,500/- dated 24,500/- dated 27.02.2007 are issued out of OD account of the creditor which are transferred in the account of the appellant maintained with the same bank branch. The overdraft facility granted by the bank to Smt Veena V Shah and the confirmation of Smt. Veena V Shah is not disputed by the AO. Moreover, she herself is filing her regular returns of income a copy of her return of income along with computation of income for AY 2007-08 filed by the AR is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o tax but also have duly shown the "loan" in their income-tax returns. Not only that, in the case of Smt. Karishma B Shah, the transactions has not only been confirmed but is also reflected in the bank accounts of the assessee as well as the creditor. Thus, the source of the loan stands fully explained therefore, no addition on account of 68 could be made. Similarly, loan taken from mother, it is seen that, cheque has been issued in favour of the assessee from her OD Account and Bank has further certified that such cheques have been issued out of the OD account and transferred to the assessee's account in the same Branch. Thus, in this case also the source of the loan stands fully explained. Accordingly, the finding as recorded by the CIT(A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of telephone, mobile, motorcar expenses, office expenses, printing and stationery, staff welfare, hotel expenses and travelling expenses as raised vide ground no. 2 to 9, we find that these additions have been made on the ground that, assessee could not prove the entire expenditure incurred for the business purpose. The reasons for making the disallowance by the AO that they were either for personal purpose or same were for non-business purpose. The assessee could not produce any material before us to rebut the finding by way of relevant evidence or bills to state that all the expenses were incurred for business purpose. The relevant head of the expenses, amount claimed and disallowance made by the AO and confirmed by the CIT(A) are as unde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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