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TMI Blog2017 (9) TMI 1347X X X X Extracts X X X X X X X X Extracts X X X X ..... stances of the case in deleting the disallowance made by the AO on account of unexplained cash deposits for Rs. 14,85,000/-. That the appellant craves leave to add, amend or alter the grounds of appeal on or before the date of appeal is finally heard for disposal." 2. Briefly stated the facts of the case are that, the case of the assessee was picked up for scrutiny assessment and the assessment was framed under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as the Act) vide order dated 31.01.2014. While framing the assessment, the AO made on account of unverified unsecured loans of Rs. 55,94,288/-. The Assessing Officer observed that as per audit report submitted by the assessee, the assessee claimed unsecured loans from Shri Gaurav of Rs. 2,81,385/-, K.C. Industries of Rs. 33,97,410/- and Bank of Baroda of Rs. 21,96,878/-. The assessing Officer made addition as there was no representative on behalf of the assessee to explain these. Further, the Assessing Officer made disallowance out of depreciation of Rs. 13,305/-, deduction under Chapter VI-A of the Act of Rs. 6,750/-, disallowance u/s 40(a)(ia) of Rs. 4,72,848/-, disallowance in respect of the expenses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsecured loans u/s 68 of the Income Tax Act. AO has stated that appellant has failed to furnish the details as required under the provisions of section 68 of the Income Tax Act in respect of the loans raised from the following persons:- A. Gaurav Rs. 2,81,385 B. K.C. Industries Rs. 33,97,410 C. Bank of Baroda Rs. 21,96,878 Total Rs. 58,75,673 4.6 The appellant has in the course of appellant proceedings filed complete details of confirmation of the creditors, copy of the bank account, copy of the ledger accounts and other details etc. Which were forwarded to the AO for examination. AO has in the remand report reiterated the reasons given in the assessment order and stated that appellant has failed to discharge the onus placed upon him u/s 68 of the Income Tax Act. 4.7 The appellant has filed a copy of the ledger account of the loans of Sh. Gaurav duly confirmed along with a copy of his election card, complete address of the creditors and its stated that the loan amount of Rs. 2,81,385/- is an opening balance which is being carried forward from the preceding year. As regards an amount of Rs. 33,97,410 is concerned a copy of ledger account with confirmat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r conditioners. 6.1 Ld. D/R submitted that the AO has given a finding on fact that the Air Conditioners were not used for business purposes and were installed at the residence of the assessee. Ld. D/R drew our attention to the Assessment Order wherein the Assessing Officer has observed that the copy of Bill filed, the bill has been issued in the name of Sh. Parveen Lamba which has been strike through and above it Kamla Wires has been written. As per the bills, these air-conditions have been delivered at the residence of the assessee i.e. 47, Ashiana Gulmohar, Bhiwadi and not at the premises of the assessee. He submitted that, further, the Assessing Officer has observed that no evidence was supplied in respect of the purchases of Computer and Television. 6.2 On the contrary, Ld. Counsel for the assessee supported the finding of the Ld. CIT(A). 6.3 We have heard the rival contentions, perused the material available on record. The Ld. CIT(A) has decided this issue in para 5.5. of his order, which is reproduced as under:- "5.5 I have perused the assessment order as well as remand report of the AO, submissions made including judicial citations and cross reply of the appellant and f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat appellant has been able to prove that expenses were incurred on repairs, payments have been made through the banking channels and TDS was made on such payments and therefore, there is no justification in making a disallowance under this head. As regards, the value of opening WDV of the block is concerned it is only a depreciated book value and thus, the amount of repairs being too high cannot be a ground for making the disallowance. Hence, I delete the disallowance of Rs. 5,97,825 made by the AO under this head." 7.4 This finding on fact is not controverted by the Revenue by placing any contrary material on record. Therefore, we do not see any reason to interfere into the finding of the Ld. CIT(A), same is hereby affirmed. This ground of Revenue's appeal is dismissed. 8. Ground No. 4 is against in deleting the disallowance made by the AO on account of unexplained cash deposits for Rs. 14,85,000/-. 8.1 Ld. D/R supported the order of the Assessing Officer and submitted that the AO observed that, the assessee deposited cash of Rs. 4,85,000/- on 22.02.2011, Rs. 2,50,000/- on 05.03.2011 and Rs. 7,50,000/- on 04.03.2011 in its HDFC Bank a/c. The Assessing Officer further observed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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