https://www.taxtmi.com/caselaws?id=312624 ITAT Cuttack upheld CIT(A)'s deletion of additions made by AO on two grounds. First, regarding higher electricity consumption and lower production suggesting undisclosed paddy milling, ITAT held that suspicion cannot substitute evidence. CIT(A) correctly accepted assessee's explanation of frequent breakdowns requiring higher electricity for machinery restart. AO relied on internet figures without verifying facts or rejecting books under section 145(3). Second, concerning capital contribution by partners, CIT(A) properly found assessee discharged onus by establishing partners' identity and creditworthiness. If AO doubted partners' creditworthiness, remedy was reopening their assessments, not adding in firm's hands. Revenue's appeal dismissed. en-us Tue, 17 May 2022 00:00:00 +0530 Wed, 28 Feb 2024 17:45:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=312624 ITAT Cuttack upheld CIT(A)'s deletion of additions made by AO on two grounds. First, regarding higher electricity consumption and lower production suggesting undisclosed paddy milling, ITAT held that suspicion cannot substitute evidence. CIT(A) correctly accepted assessee's explanation of frequent breakdowns requiring higher electricity for machinery restart. AO relied on internet figures without verifying facts or rejecting books under section 145(3). Second, concerning capital contribution by partners, CIT(A) properly found assessee discharged onus by establishing partners' identity and creditworthiness. If AO doubted partners' creditworthiness, remedy was reopening their assessments, not adding in firm's hands. Revenue's appeal dismissed. Case-Laws Income Tax Tue, 17 May 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=312624