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TMI Blog2023 (11) TMI 847X X X X Extracts X X X X X X X X Extracts X X X X ..... ances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in making aggregate addition of Rs. 25,00,000/- on account of unsecured loan received from M/s Blush Equity (P) Ltd. and M/s Glaxo Buildcon (P) Ltd. and that too by recording incorrect facts and findings and in violation of principles of natural justice. 2. That in any case and in any view of the matter, action of Ld. CIT(A) in confirming the action of Ld. AO in making aggregate addition of Rs. 25,00,000/- on account of unsecured loan, is bad in law and against the facts and circumstances of the case. 3. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6/03/2019 confirmed the addition of Rs. 25,00,000/- made by the A.O. on account of unsecured loans received from M/s Blush Equity (P) Ltd. and M/S Glaxo Buildcon Pvt. Ltd., confirmed the addition of Rs. 26,13,060/- made on account of Sundry Creditor, confirmed the disallowance of Rs. 58,000/- claimed on account of salary payable and also restricted the disallowance of Rs. 1,56,325/- (i.e. 1/10th of Rs. 15,63,245/-) on account of various expenses. Aggrieved by the order of the CIT(A), the assessee preferred the present Appeal on the grounds mentioned above. 4. Ground No. 1 and 2 are relating to aggregate addition of Rs. 25,00,000/- on account of unsecured loans received from M/s Blush Equity (P.) Ltd. and M/s Glaxo Buildcon Pvt. Ltd. which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the lenders. Therefore, the above addition of Rs. 25,00,000/- made by the A.O. which was confirmed by the CIT(A) is hereby deleted. 7. Ground No. 3 & 4 relating to addition of Rs. 26,13,060/- being the amount of unexplained Sundry creditors which has been confirmed by the CIT(A). 8. The Ld. Assessee's Representative submitted that the CIT(A) committed an error in law and on facts in confirming the Action of the A.O. in making addition of Rs. 26,13,060/- on account of Sundry Creditors and that to by recording in correct facts and findings and in violation of principals of natural justice without considering the submission of the assessee. 9. Per contra, the Ld. Departmental Representative submitted that the assessee was asked to furn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h these details in-spite of being specifically asked by me to file the same. It is also seen that no payments has been made by the appellant to any of the creditors except one during the year under consideration. It is highly improbable that a small town trader could survive after allowing credit for almost 2-3 years without asking for payment. On Further enquiry it was noted that all the payments were claimed to have been made in cash over the years. Copies of the year wise accounts of the creditors showing payments made by the appellant are enclosed as Annexure-I to this order. It is seen that the repayments are either in cash or through transfer of plant & machinery. Cash payments are shown in amounts of less than Rs. 20,000/- per day in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee and decide the issue afresh. 13. Ground No. 5 is related to disallowance of Rs. 58,000/- which was claimed being the amount of salary and the same has been confirmed by the CIT(A). The Ld. Assessee's Representative submitted that the assessee produced Adhar Card of the employees before the A.O., for proving identity of the employees to whom the salary were paid and also submitted the details of salary paid to the employees showing the name, post, amount and their signature on the receipts together with confirmation from the employees confirming the facts of receipt of the salary, but the same has been ignored by the authorities. 14. Per contra, the Ld. Departmental Representative relied on the order of the CIT(A). 15. Considering ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9/- which has been added back to the returned income of the assessee. The CIT(A) while dealing the said issue, reduced and restricted the disallowance to 1/10th of the expenses claimed by the assessee. Since, the assessee had not provided any details or any satisfactory evidence with regard to the genuineness of the expenses and considering the nature of the expenses claimed and also the nature of business of the Assessee, in our opinion, the CIT(A) rightly restricted the disallowance to 1/10th of the expenses claimed under the said head which is reasonable as well. Accordingly, we dismiss the Ground No. 6 of the assessee. 19. In the result, Appeal filed by the assessee is partly allowed for statistical purpose. Order pronounced in open C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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