TMI Blog2010 (10) TMI 1161X X X X Extracts X X X X X X X X Extracts X X X X ..... er, 2006 declaring an income of ₹ 32,69,710/-. At the relevant time assessee was in the business of trading of painting, sculptures and other art effects. On scrutiny of the accounts Ld. AO found that assessee has received a sum of ₹ 3 lacs on 27.8.2005 from M/s. Threshold Art Gallery Private Ltd. The assessee was holding 9500 shares out of the total 1000 shares of M/s. Threshold Art Gallery. The AO has observed that the company had given a loan of ₹ 3 lac to a shareholder. The company had accumulated profit and the public was not substantially interested. He observed that to the extent of accumulated profit, the loan given to the assessee is to be treated as deemed dividend in her hand. He worked out such amount at ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... grievance of the revenue is that Ld. CIT(A) has erred in deleting the addition of ₹ 2,05,599/-. The brief facts of the case are that assessee has debited a sum of ₹ 4,65,264/- and ₹ 2,64,031/- on domestic and foreign travelling. The AO has perused the details of expenses and has observed that assessee is a trader of art work and painting. She is not an artist by profession. On going through the details of expenses it revealed that certain expenses were incurred on tours with artists. In the opinion of AO, these expenses were incurred for leisure trips then being professional trip. He made disallowance of ₹ 2,05,599/- 6. On appeal it was contended that assessee has to attend many exhibitions, workshops etc. where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The facts and circumstances of this issue have been noticed by the Ld. CIT(A) in detail from paragraph No. 16 to 19 they read as under :- [16] Now, I shall adjudicate ground of appeal No. 4. Here, the assessee has made an addition of ₹ 25,93,000/-. The Learned AO observed that the assessee had taken loan from various parties, for which he requisitioned the confirmations. The same was filed. However, on 12.11.08, the Assessing Officer specifically requested the assessee to furnish bank details along with proof of loan from Shri S.P. Aggarwal, M.S. Bhawna Gupta, Asha Rani Parashar, Sachin Aggarwal and Renu Gupta. In response, among others, the ITRs of the following persons were filed and analysed by the Assessing Officer :- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, Shri Sachin Aggarwal, received ₹ 3,50,000/- on 5.9.2005 and ₹ 1,00,000/- on 8.9.05 which was advanced to the assessee on 6.9.05 and 10.9.05 respectively. Further, Smt. Renu Gupta received ₹ 5,02,000/- on 8.10.05 and ₹ 2,00,000/- on 23.3.06 and advanced ₹ 5,00,000/- and ₹ 2,31,060/- to the assessee on 11.10.05 and 28.3.06 respectively. Further identifying the source, it was discovered by the Learned AO that Shri S.P. Agarwal had received the money from Rishi Raj Leathers, Bhawana Gupta from sales made and gift from grand father; Sachin Aggarwal from Rish Raj Leather and R.G. Creations Pvt. Ltd.; and Smt Renu Gupta had business receipts. Vetting the capital account and the statement of affairs, the Learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... {19} In the rejoinder, the assessee submitted the details of advances once again. During the course of hearing, it was specifically asked as to what was the date of money returned to the creditors and that where was the money spent? This querry was put across on 6.1.2010. On the next date of hearing, on 22.2.2010, the necessary details have been filed. 9. With the assistance of Ld. Representative we have gone through the record carefully. In order to explain the credit entry assessee has filed the confirmation from the creditor, their income tax return, their bank statement. In other words assessee has proved their identity as well as genuineness of the transaction. The only objection of the AO is that some of the creditors do not ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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