TMI Blog2023 (2) TMI 705X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld.CIT(A) - HELD THAT:- We find that the said cancellation of MOU has been mentioned with the date of coming into effect as 06/06/2014. As per Clause 7 of the Memorandum of Understanding dated 04/04/2014 the MOU came into force once it is executed and valid for a period of one year the said MOU has been cancelled on 06/06/2014 itself and the security deposit was liable to be enchased after expiry of 75 days from the date of execution of the MOU. Since the cancellation has been done within the 60 days from the date of execution of the MOU, the question of encashing by the assessee does not arise. The revenue has not brought anything on record to prove that the amount has been debited from the account of the Rajat Pharmachem Ltd. or credited into the account of the assessee. Hence, in the absence of any evidence to prove either the payment from the bank or in the form of cash by the payer or receipt of the amounts into the bank or otherwise by the assessee, the addition made cannot be sustained. Disallowance of unexplained expenditure u/s 69 - Expenses are not debited in P L Account and not disclosed - HELD THAT:- As in the remand proceedings, the A.O. accepted that the ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to show that in fact alleged amount was paid/belong to assessee. 3. On the facts and in the circumstances of the case as well as in law the Ld. Commissioner of Income Tax (Appeals) grossly erred in confirming the disallowance of expenses of' Rs.93,40,135/- incurred exclusive for business purpose of the assessee and adding the same u/s 69C of the Income Tax Act,1961. 4. On the facts and in the circumstances of the case as well as in law the Ld. Commissioner of Income Tax (Appeals) grossly erred in confirming the action of Ld. Assessing Officer I. Alleging that the business expenses are not genuine and are in the nature of personal expenses. II. Alleging that assessee failed to discharge onus casted on it to prove the genuineness of expenses. III. Not providing adequate and proper opportunity of being heard and to produce the evidences. 5. On the facts and in the circumstances of the case as well as in law the Ld. Commissioner of Income Tax (Appeals) grossly erred in upholding the addition of Rs.1,00,00,000/- based on dumb document without any corroborative material on record to support the addition. 6. On the facts and in the circumstanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing heard and to produce the evidences. 5. The appellant crave leave to amend, alter, add/modify any or all grounds of appeal. I.T.A. No. 9748/DEL/2019 :- 4. Brief facts of the case are that, a search and seizure operation u/s 132 of the Income Tax Act, 1961 ( Act for short) was carried out at the business/residential premises of Paras Mal Lodha Group and during the course of the search certain documents belonging to assessee were seized on the basis of the document seized, proceedings u/s 153A of were initiated in the case of the assessee. The assessee has filed the return declaring a loss of Rs.32,16,042/- in response to notice u/s 153A of the Act. 5. The assessment order u/s 153A/143(3) of the Act came to be passed on 31/12/2018 for the Assessment Year 2015-16 by making addition of Rs.93,40,135/- as unexplained expenditure u/s 69C read with Section 115BBE of the Act and further, made addition of Rs. 1,00,00,000/- as unexplained money u/s 69A read with Section 115BBE of the Act. Accordingly, the income of the assessee was assessed at Rs.1,61,24,093/- as against returned loss of Rs. 32,16,042/-. 6. The assessee has preferred an appeal before the CIT(A) w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Brief facts are that a MOU between the assessee and M/s Rajat Pharmachem Ltd. was seized. During the course of assessment proceedings the assessee was asked to explain the transaction and to produce the proof to show that it has been accounted for the books. The assessee had furnished the reply on 21/12/2018 wherein submitted as under:- Documents seized from to provide legal assistance to Rajat Pharma Chem Ltd. However this understanding did not materialized executed due to non suitability of commercial terms and conditions. Hence, it do not have any evidentiary value. 13. The A.O. was of the opinion that the assessee had failed to discharge its primary onus to explain the incriminating document seized from its premises and an amount of Rs. 1 crore was added to the income of the assessee as unexplained money u/s 69A Section 115 BBE of the Act. During the appeal proceedings before the Ld. CIT(A), the assessee filed copy of the cancellation letter of MOU by Rajat Pharmachem Ltd. claiming that the security deposit of Rs. 1 crore was not en-cashed and further submitted that as per Clause (VI) (B) of the MOU the Rajat Pharchem Ltd. has kept the security deposit with asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment made by the assessee of Rs. 1,15,10,433/- should not be disallowed. In response, the assessee informed the A.O. that the expenses were incurred exclusively for the business purpose of the assessee and since customers of the assessee and Director used to visit Delhi for the business purpose, hence, claimed the same as business expenses. To prove the position, the assessee submitted the bank book and ledger showing that payments were made through banking channels and suitably accounted for in the books of accounts and disclosed in the P L account under the head of travelling and conveyance. 20. Not satisfied with the explanation of the assessee, the A.O. has made addition of Rs. 71,270/- u/s 69C as unexplained expenditure and added back to the income of the assessee. The Ld. Counsel for the assessee argued that the expenses were incurred through proper banking channel, disclosed in books of accounts and debited in profit and loss account under the head of travelling and conveyance, hence the addition u/s 69C of the Act cannot sustained. 21. We have heard the parties perused the material available on record and gave our thoughtful consideration. 22. It is found that disa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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