Political contribution deductions require assessee-specific proof before cash-back allegations can justify disallowance or unexplained-money additions...
Assessee, a partner in Daurau Farms LLP engaged in sale of farm fresh milk, paid Rs. 30 lakhs in three installments of Rs. 10 lakhs each to Mr. Deepak for purchasing cows. Assessee explained cash was paid from firm's cash sales and bank receipts. Revenue doubted transactions and made addition u/s 69C. ITAT accepted assessee's explanation, holding addition based on suspicion alone. Directed Assessing Officer to delete addition. Assessee's appeal allowed.
Assessee, a partner in Daurau Farms LLP engaged in sale of farm fresh milk, paid Rs. 30 lakhs in three installments of Rs. 10 lakhs each to Mr. Deepak for purchasing cows. Assessee explained cash was paid from firm's cash sales and bank receipts. Revenue doubted transactions and made addition u/s 69C. ITAT accepted assessee's explanation, holding addition based on suspicion alone. Directed Assessing Officer to delete addition. Assessee's appeal allowed.
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