TMI Blog2016 (1) TMI 796X X X X Extracts X X X X X X X X Extracts X X X X ..... rinting and stationery, staff welfare, hotel expenses and travelling expenses - Held that:- Such an ad-hoc disallowance are quite reasonable and hence no interference is called for as 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. Accordingly, order of the CIT(A) on this score is affirmed - Decided against assessee - ITA No. : 1537/Mum/2011 - - - Da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irmation was received from her, hence loan of ₹ 8,65,500/- remained unproved. Further, addition of ₹ 8,49,360 was also made on account of difference between total unsecured loans shown in the Balance sheet and explanation not furnished by the assessee. 3. Before the CIT(A), it was submitted that after the assessee had filed the requisite details and the explanation, AO did not gave further opportunity to the assessee and he did not specifically confronted to the assessee regarding non-compliance of notice by Smt. Veena V Shah, who is assessee s mother. Thus, additional evidence were filed before the CIT(A) containing all the relevant information and explanation to prove the genuineness of the loan. It was further submitted th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to tax and have been filing their return of incomes and the factum of giving of loan is not only reflected in their bank statement but also been shown in their relevant income-tax records. Thus, the source of these credits stands fully explained. The relevant observation and finding with regard to evidences filed by both the lenders and the conclusion drawn by the CIT(A) is as under :- Accordingly, the AR has filed the relevant bank account statement of Smt. Karishma B Shah, Proprietor of Business Commission along with his reply dated 08.12.2010. From the same, I find that all these transactions are duly recorded therein. These transactions are through cheques which are reflecting in both the concerned bank accounts of the appellant an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evidences placed on record, as discussed above to my considered opinion the AO is not justified in considering the loan received on from Smt. Veena V Shah as his unexplained cash credits u/s 68 of the Act. Therefore, on account of the aforesaid discussion, I find that the appellant has discharged the onus cast on him so as to explain the source of credits appearing in his books of account pertaining to the unsecured loans taken from his mother and sister-in-law by furnishing the necessary explanation and supporting evidences within the meaning of the provisions of section 68 of the Act. The source of the loans given to the appellant arising directly out of their respective bank accounts, to my considered opinion the source of the rele ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... grounds on account of various ad-hoc disallowances on account of telephone, mobile, motor expense and depreciation. Besides this, the assessee is challenging the addition of ₹ 97,250/- on account of cash payment made to HDFC Bank for purchase of a car. 7. As regards addition of ₹ 97,250/- made u/s 68 as raised vide ground no.1, brief facts are that, the assessee has purchased a car for ₹ 5,27,560/- which has been financed by taking a loan of ₹ 4,35,000/- from HDFC Bank and further making down payment of ₹ 91,920/- in cash. The assessee could not explain before the AO the source of down payment made in cash, accordingly, it was added u/s 68 by the AO. The assessee s contention had been that, he had sufficient ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Disallowance made (Rs.) Reason for making the disallowance Telephone exp 2,65,255 30,000 Personal nature of expenses of the appellant and his family members debited to P L account for which no details are maintained by the appella Motor Car exp. 90,532 10,000 -- do -- Conveyance exp 69,325 10,000 Possibility of the expense incurred for non-business purposes. Office exp. 12,199 2,000 Expense claimed on the basis of self ..... X X X X Extracts X X X X X X X X Extracts X X X X
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