TMI Blog2020 (6) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... n that the appellant was not engaged in any business during the year under consideration - Stand of the assessee is that, it has received deposits from members who have purchased property in its projects Kaivana Building and of that it has incurred expenditure towards electricity as well as staff salary and other expenses - HELD THAT:- It is pertinent to observe that the assessee has not shown any income or rental income nor it has pleaded before the AO that it was in the business of maintenance of the building. Both Revenue authorities have concurrently recorded a finding that complete details were not submitted. This expenditure has no connection with earning of interest income from the deposits- stand of the assessee, if it is being demonstrated that maintenance of the alleged building is one of its area of business operation and out of maintenance activity it would show income in future. There is nothing that sort of. The assessee was unable to point that any expenditure was claimed in subsequent year on this or any income for maintenance of building was ever shown by the assessee. After considering the finding of the ld.CIT(A), no merit in this ground of appeal. Also no me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame is accordingly dismissed. As far as other grounds are concerned, the brief facts leading to the present case reads as under: 5. As the facts emerge out from the record, a search action under section 132(1) of the Act was conducted at the premises of Navratna Group of cases on 10.5.2006 and various books, documents etc. were found and seized from their premises relating to the assessee. In response to the notice under section 153C, the assessee has filed return of income on 19.8.2008 declaring total income at Rs.NIL. The assessment order under section 153C r.w.s. 143(3) of the Act was passed on 26.10.2008 by making addition on account of unexplained cash credit of ₹ 17,54,784/- and disallowance of ₹ 5,79,872/- as expenses claimed in P L account. Total income accordingly was determined at ₹ 18,85,175/-. This was confirmed upto the ld.First Appellate Authority. Assessee thereafter carried the matter in appeal before the Tribunal in IT(SS)A.no.148/Ahd/2010, and the Tribunal vide order dated 10.9.2014 set aside the issues back to the file of the AO for read-judication. In the set aside proceedings, the ld.AO vide his order dated 9.11.2015 under section 143(3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Building construction of which was completed on 31.3.2002 and the units in the same building were allotted to the members. It has debited expenses of ₹ 5,79,872/- in the P L account. Being one of the owners of the building, the assessee has incurred various expenses towards maintenance of building. The assessee collected maintenance deposits from the members, and deposited the same with the bank and earned interest income on such deposits. Assessee has earned interest income on FD of ₹ 1,30,391/- against which the assessee has incurred administrative expenses towards electric expenses amounting to ₹ 4,18,640/-, site expenses of ₹ 14,170/- and staff salary of ₹ 84,062/-, totaling to ₹ 5,16,872/-. The AO has treated the interest income earned by the assessee of ₹ 1,30,391/- as income from other sources, and disallowed expenses of ₹ 5,16,872/- for want of business nexus. It is submitted that the expenses were accounted for, and audited by the auditors. Nature of the expenses reveals that the same were incurred wholly and exclusively for assessee s business, hence it is an allowable expenditure. Genuineness of the expenses has not been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs has been shown at ₹ 4,29,9459/- and ₹ 13,25,325/- respectively. Details of accounts along with confirmation, addresses and PAN of the lenders have been furnished to the AO for verification. Even the assessee has furnished copy of assessment orders passed in the case of lender for the relevant year for verification. Apart from that, these funds have been received by the assessee through banking channel, and therefore, all the ingredients necessary for proving cash credit under section 68 has been satisfied by the assessee. In my view, looking to the details provided to the Revenue authorities and copies also available in the paper book, I am satisfied that the assessee has discharged burden put upon it by virtue of section 68 of the Income Tax Act, 1961. Therefore, I allow this ground of appeal and delete addition. 10. So far as next issue regarding disallowance of expenditure of ₹ 5,16,872/- is concerned, I deem it appropriate to take note of finding recorded by the ld.CIT(A) which reads as under: 5.3. Decision: I have carefully considered the facts of the case, the assessment order and the written submission of the appellant. The AO has made th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade by the AO is found correct and justified and hence the same is confirmed. Thus the grounds of appeal are dismissed. 11. A perusal of the above finding as well as submissions made by the assessee and reproduced by the ld.lower authorities would reveal that the stand of the assessee is that, it has received deposits from members who have purchased property in its projects Kaivana Building. Out of that it has incurred expenditure towards electricity as well as staff salary and other expenses. It is pertinent to observe that the assessee has not shown any income or rental income nor it has pleaded before the AO that it was in the business of maintenance of the building. Both Revenue authorities have concurrently recorded a finding that complete details were not submitted. This expenditure has no connection with earning of interest income from the deposits. I could appreciate the stand of the assessee, if it is being demonstrated that maintenance of the alleged building is one of its area of business operation and out of maintenance activity it would show income in future. There is nothing that sort of. The assessee was unable to point that any expenditure was claimed i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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