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2016 (3) TMI 636 - ITAT LUCKNOW

2016 (3) TMI 636 - ITAT LUCKNOW - TMI - Unexplained unsecured loan - failure to prove the creditworthiness and genuineness of the person lending Unsecured loan u/s 68 - Held that:- We find that this issue was decided by CIT(A) in favour of the assessee on the basis that this amount of ₹ 16,28,868/- added by the Assessing Officer u/s 68 is regarding opening balance of three outgoing partners and therefore, the same is not justified. We find no infirmity in the order of CIT(A) on this issue .....

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the paper book does not establish the contention that there are creditors for goods and/or expenses particularly in the absence of name and address of the said creditors. Hence, we reverse the order of CIT (A) on this issue and restore that of the A.O - Decided against assessee

Disallowance of salary of partners - Held that:- Disallowance of salary to partners has been deleted by CIT(A) on the basis that during the year in question, fresh partnership deed was prepared in which salary .....

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, on this issue, we do not find any infirmity in the order of CIT(A) and therefore, we uphold his order on this issue - Decided against revenue

Addition u/s 40A(3) - Held that:- This disallowance was deleted by CIT(A) on the basis of submissions of the assessee before him stating that on each day, purchases were made in cash from different persons/parties on several occasions but the payment made to single party on single purchase did not exceed the limit of ₹ 20,000/-. No such .....

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ance was partly deleted by CIT(A) on the basis that the disallowance of 2.5% was made by the Assessing Officer on ad hoc basis and in the opinion of CIT(A), the disallowance of 1% is reasonable. In this manner, he reduced the disallowance to ₹ 15,55,749/- as against disallowance of ₹ 38,89,360/- made by the Assessing Officer. Considering the facts of the present case, we feel that there is no infirmity in the order of CIT(A) on this issue. Hence, we decline to interfere in the order .....

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,000/- and in this manner, he allowed relief of ₹ 5,77,731/- on this issue. Considering the facts of the present case, we find no infirmity in the order of CIT(A) on this issue.- Decided against revenue - ITA No.368/LKW/2014 - Dated:- 3-2-2016 - SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER For The Appellant : Dr. A. K. Singh, CIT, D.R. For The Respondent : Shri K. R. Rastogi, C. A. ORDER PER A. K. GARODIA, A.M. This is Revenue s appeal directed against t .....

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e supported the order of Assessing Officer whereas Learned A. R. of the assessee supported the order of learned CIT(A). 4. We have considered the rival submissions. We find that this issue was decided by CIT(A) in favour of the assessee on the basis that this amount of ₹ 16,28,868/- added by the Assessing Officer u/s 68 is regarding opening balance of three outgoing partners and therefore, the same is not justified. We find no infirmity in the order of CIT(A) on this issue because opening .....

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Learned A. R. of the assessee supported the order of learned CIT(A). He also submitted that the details are available on pages 2-31 of the paper book. 7. We have considered the rival submissions. We find that it is noted by the Assessing Officer in Para 5 of the assessment order that in the balance sheet of the assessee as on 31/03/2010, sundry creditors amounting to ₹ 2,20,87,655/- are shown. The Assessing Officer asked the assessee to provide names, addresses and copies of accounts of th .....

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alances in these accounts are not known and the assessee has not made any effort to prove even the basic requirement of law with regard to identity of persons. After making these observations, the Assessing Officer made addition of ₹ 2,20,87,655/-, which was deleted by CIT(A) on the basis that opening balance of unpaid liability of material and labour etc. of ₹ 2,17,03,387/- could not be treated unexplained unpaid liability in the hands of the assessee during the present year under c .....

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hom the payment is made. The credits are with the narration, purchase of contract materials, labour and wages etc. and the debit is by mentioning narration such as cash or Bank of Baroda (CC). It may be that the payments in the present year of ₹ 1519.70 lacs has liquidated the entire amount of opening balance of ₹ 217.03 lacs and the entire amount of closing balance of ₹ 277.01 lacs is in respect of amount credited in the present year without disclosing the name of the creditor .....

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ot established this also that the creditors are for goods or expenses and mere crediting the amounts in the account with the nomenclature Creditors for material and labour etc. as per copy available on pages 47 to 64 of the paper book does not establish the contention that there are creditors for goods and/or expenses particularly in the absence of name and address of the said creditors. Hence, we reverse the order of CIT (A) on this issue and restore that of the A.O. Accordingly, ground No. 2 i .....

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the year in question, fresh partnership deed was prepared in which salary to partners was settled to be paid on the basis of profit sharing ratio and this was done to give boost to the partners to work more diligently and honestly for the upliftment of the firm. He has further noted that the partners were also reduced from 8 to 5. Regarding this allegation that the partnership deed was not filed, it is noted by CIT(A) that the same was filed before the Assessing Officer and this finding of CIT(A .....

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1. 12. Learned D. R. of the Revenue supported the order of Assessing Officer whereas Learned A. R. of the assessee supported the order of learned CIT(A). 13. We have considered the rival submissions. We find that the Assessing Officer has noted in the assessment order the dates and amount of various payments and after excluding those payments, which were made by way of cheque, the Assessing Officer has disallowed the amount of cash payments in excess of ₹ 20,000/- by invoking the provision .....

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ayment noted by the Assessing Officer is not payment to one party but to different parties. Hence, on this issue also, we feel that the order of CIT(A) is not sustainable and therefore, we reverse the same and restore that of the Assessing Officer. Accordingly, ground No. 4 is allowed. 14. Ground No. 5 is as under: 5. The Commissioner of Income Tax(Appeals), Lucknow has erred in law and on facts of the case in deleting the addition of ₹ 23,33,616/- out of various expenses claimed by the as .....

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