1998 (2) TMI 594

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..... While doing so, the AO has disallowed the claim of the assessee on account of depreciation and interest to third parties. The learned A.R. also submits that rejection of books of a/c is highly unjustified and without any basis. In the alternative it is also argued that when net profit is applied, deduction on account of claim of depreciation and interest paid to third parties should have been considered and allowed by the CIT(Appeals). In this connection, he relies upon the decision of this Tribunal in ITA No. 1539/JP/93 dated 10.4.1995 in the case of Maheshwari Builders Bikaner Vs. ACIT, Bikaner. As against the submission of the learned A/R, the D/R relies upon the orders of the authorities below. 3. We have examined the facts and the s....

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.... her statement was recorded. It is also mentioned therein that the amount of ₹ 40,000/-was advanced by the banker of the creditor against deposit of NSC. Under the circumstances, we are of the opinion that the creditor who is an income tax payee and the identity is established, is genuine. The genuineness of the transactions was proved beyond doubt and that the creditor has also explained the source of the credits. This addition is, therefore, held as unreasonable and is deleted. 6. The next addition is in regard to the credit in the name of Shri Vijay Mohata who introduced ₹ 19,500/-. This amount is stated to have been advanced from the drawings against salary from a person who is an income-tax assessee and whose confirmations....