2012 (7) TMI 396

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.... CIT(A) has erred in allowing Rs.2,09,475/- being 50% of addition made u/s. 37 of Rs.418950/-.   2. On the facts and circumstances of the case, the learned CIT(A) has erred in deleting the addition made of Rs.278118/- beign the difference in figures of Sundry Creditors and Sundry Debtors and added u/s. 68 r. w. s 41(1). 3. On the facts and circumstances of the case, the learned CIT(A) has erred in deleting the addition made of Rs.35,33,110/- u/s 69 r. w. s. 69A & 69B being unexplained investment and Loans and Advances." 3. The assessee an individual filed her return of income on 31-10- 2005 declaring total income of Rs.15,00,000/-. The case was selected for scrutiny and the assessment was completed u/s 144 of the IT Act on 28-....

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....charge her duty to prove such expenditure is genuine and allowable as provided under the Act. On the other hand, the learned AR relied on the order of the learned CIT(A). 6. We have heard the rival submissions and perused the materials placed before us carefully. In business, to earn profit, necessarily one has to incur expenditure. In the given case, the assessee did not furnish the details of the expenditure claimed by her. Keeping in view of the general business conditions, the learned CIT(A) had gracefully deleted 50% of the addition made by the learned AO on the premises that in business the appellant would have to incur some expenses. Keeping in view the facts and circumstances of the case, we subscribe to the view of the learned C....

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....ch more aggressively. Further, we do not find any merit in the observations of the learned CIT(A) since he simply held without stating any reason that addition cannot be made without bringing any materials on record when the fact remains that no materials was brought on record by the assessee for consideration. The onus is on the assessee to establish that the sundry creditors and sundry debtors are genuine. In the present case, the learned AO was lenient enough to tax only the excess credit over the debtors for want of proof of source. We therefore confirm the order of the learned AO. Thus this ground of the revenue is allowed. 10. Ground No.3 - addition of Rs.35,33,110/- made u/s 69 read with section 69A and 69B of the IT Act being une....