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2018 (3) TMI 522

nd no other evidence was shown by the revenue demonstrating that the cash withdrawals are used for any other purpose either for personal or business credits. Therefore, we do not find any infirmity in the order of the Ld.CIT(A) and the same is upheld. Appeal of the revenue is dismissed on this ground. - Staff Salaries and Bonus and accounting charges disallowed - Held that:- DR did not bring any tangaible material to substantiate the disallowance of salaries at 30% and disallowance of entire expenditure in respect of staff bonus and accounting charges. No other material was placed on record before us to controvert the finding of Ld.CIT(A). Therefore, we do not find any reason to interfere with the order of the Ld.CIT(A) and accordingly .....

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Order of the Ld. CIT(A) is contrary to the facts and to the Law applicable to the facts of the case. 2. The Ld. CIT(A) erred in disallowing only 10% of the expenditure claimed on account of salaries of ₹ 21,60,000/-, as against the 30% disallowed by the A.O, considering the fact that the expenditure claimed against salaries was unreasonably high. 3. The Ld. CIT(A) erred in disallowing only 10% of the expenditure claimed towards staff bonus paid of ₹ 1,80,000/- as against the whole amount being disallowed by the A.O, considering the fact that the assessee has failed to produce any bills or vouchers in support of his claim. 4. The Ld. CIT(A) erred in disallowing only 15% of the expenditure claimed towards accounting charges of &# .....

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nd perused the material placed on record. Ground Nos.2, 3 and 4 are related to the disallowance of expenditure under various heads in respect of salaries, bonus, accounting charges. The AO disallowed 30% of the salaries paid without assigning any reason. Similarly, in respect of bonus and accounting charges entire amount was disallowed by the AO. Ld.CIT has considered the issue very carefully and held that disallowance of 10% of expenditure in respect of salaries and bonus and 15% of expenditure in respect of accounting charges would meet the ends of justice. For ready reference, we extract relevant paragraphs of the order of the Ld.CIT which reads as under : 7.2 During the appeal hearing, the AR represented that the expenditure incurred to .....

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unt, u/s 68 of the I.T. Act. During the assessment proceedings, the AO found as per AIR information, that the assessee had savings bank account No.017300100023562 in M/s Dhanalaxmi Bank, Visakhapatnam and had made cash deposits on various dates to the tune of ₹ 53,42,300/- in the bank account. The assessee explained the cash deposits of ₹ 10 lakhs which was received from Sri V. Kondappa Naidu by way of account payee cheque on 28.04.2010 bearing cheque No.46608 deposited in his SB Account No.017300100023562. Therefore, the AO made the balance amount of ₹ 43,42,300/- as unexplained cash credits u/s 68 of I.T.Act after excluding the sum of ₹ 10.00 lacs. 13. Aggrieved by the order of the AO, the assessee went on appeal b .....

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into their bank account. The argument of the assessee was that the cash deposits were made in the bank account out of withdrawals. There was no other evidence brought by the revenue before us indicating that the cash withdrawals were used for any other purpose either for expenditure or for any other investments. In the absence of any other evidence as observed by the Ld.CIT(A), the possibility of cash withdrawals forming source for the subsequent cash credits cannot be ruled out. The Ld. CIT(A) observed from the bank statement that the assessee has withdrawn the cash and redeposited the same in the bank account. The decision relied upon by the revenue is distinguishable on facts in respect of inconsistency with not only explanation of amou .....

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