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2017 (6) TMI 1079

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....953/- being deemed rent income, made by the Assessing Officer. 2) Under the facts and circumstances the learned CIT(A) erred in confirming the addition of Rs. 12,500/- u/s. 14A r.w. Rule 8D, made by the Assessing Officer. 3) Under the facts and circumstances the learned CIT(A) erred in confirming the addition of Rs. 17,500/- on account of payments to traffic police for Police Bandobust stating nonbusiness expenditure made by the Assessing Officer. 4) Under the facts and circumstances the learned CIT(A) erred in confirming the addition of Rs. 45,411/- on account of Non deduction of TDS on interest paid on car Loan made by the Assessing Officer. 5) Under the facts and circumstances the learned CIT(A) erred in confirming the addition o....

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....carried out and the flats were not rented out, that it was also claimed that the flats were used for office premises, that in the subsequent years the AO had not made any addition under the head beings rental income. Once the assessee had produced the bills of repairs and renovation of the flats and the AO had treated the said expenditure as capital expenditure, there was no justification for making any addition under the head house property income. Both the authorities have not proved that the flats were rented out during the year under Appeal. As per the settled principles of taxation if any sum has to be taxed the AO has to bring on record the necessary facts for taxing the same. In our opinion, the AO has not discharged the onus in that....

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....ssessee in the present appeal is squarely covered in favour of assessee as the facts of this year are also not at variance, hence this ground of appeal is allow in favour of the assessee. 8. Ground no. 3 relates the confirming the addition of Rs. 17,500/- on account of payment to Traffic Police for Police arrangements (Bandobast). The Ld. AR of the assessee argued that the assessee is managing a Water Part at Thane and at the time of functions on New Year's celebration, annual function the Police arrangements are made to manage the public and certain payments were made to the Traffic Police. Such payments are made for the purpose of business. Thus, the expenses are allowable expenses under section 37 of the Act. On the other hand Ld. DR fo....

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....d. AR of the assessee that the said expenses were deposited with the account of traffic police for making the necessary arrangements at the Water Park or the payment was made as statutory expanses. The assessee has failed to substantiate its contention that the expenses were paid wholly and exclusively for the purpose of business. The Hon'ble Karnataka High Court in CIT Vs Neelavathi & others (2010) 322 ITR 643(Kar) held that payments made to police or rowdies to keep away from the business premises is not allowable as business expenses. Thus, we did not find any illegality or infirmity in the order of Ld. CIT(A) hence, this ground of appeal is dismissed. 10. Ground no. 4 relates to confirming the addition of Rs. 45,411/- due to non-deduct....

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....see purchases the fuel of less than Rs. 20,000/- at a time. At no point of time the purchase of fuel exceeds the amount of Rs. 20,000/- on one time. The Ld. AR of assessee submitted that the receipts of fuel are available at page number 66 to 69 of the paper book. On the other hand the Ld. DR for the Revenue supported the order of the authorities below and argued that after the amendment in the relevant section [40A(3)] by Finance Act w.e.f. 01.04.2009 the word "or aggregate of payments made to a person in a day, otherwise than by account payee cheque drown on a banker account payee draft, exceeds twenty thousand rupee" has been brought in the statue book. 13. We have consider the contention of both the parties have gone through the order ....

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....st of receipts are as below: Sr.No. Date Rs. Receipt No. 1. 02/05/2009 14,404.00 63110 2. 02/05/2009 14,404.00 63174 3. 03/05/2009 14,404.00 63352 4.  03/05/2009 14,404.00 63345 5. 05/06/2009 14,404.00 83091 6. 05/06/2009 14,404.00 83103 7. 26/02/2010 15,368.00 38637 8. 26/02/2010 15,368.00 38629 Total 1,17,160.00/-     We have seen that though none of the receipt is exceeded Rs. 20,000/- at one time, yet the assessee made aggregate purchases of more than Rs. 20,000/- in cash in a day, on four occasions which is prohibited by Section 40A(3) of the Act. Though, the identity and the payments made to the party are not in dispute. After the amendment in section 4....