TaxTMI 
TaxTMI 
2019 (7) TMI 378
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....ed. 2. Rs. 77,192/- : The Id. CIT(A)has grossly erred in law as well as on the facts of the case in sustaining the disallowance of Rs. 77,192/- on account of various expenses as wages, vehicle, shop and shop repair maintenance @10% out of 20% made by the Id. AO. Hence the disallowance so made by the AO and partly confirmed by the Id. CIT(A) is being totally contrary to the provisions of law and facts on the record and hence same may kindly be deleted in full. 3. Rs. 3,00,000/: The Id. CIT(A) has grossly erred in law as well as on the facts of the case in sustaining the addition of Rs. 3,00,000/- on account of cash credit u/s 68. Hence the disallowance so made by the AO and confirmed by the Id. CIT(A) is being totally contrary to the pro....
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.... vehicle, shop and shop repaid expenses total amounting to Rs. 7,71,920/- and 20% of the same was worked out at Rs. 1,54,384/-. The assessee challenged the action of the A.O. before the ld. CIT(A). The ld CIT(A) has restricted the disallowance from 20% to 10% being Rs. 77,192/- as against Rs. 1,54,384/- made by the A.O. 4. Before us, the ld AR of the assessee has submitted that the A.O. has made ad hoc disallowance of various expenses which is not permissible and particularly when the trading result of the assessee for the year under consideration are better than the preceding year. He has referred to the G.P. rate of the preceding year at 1.11% whereas the G.P. rate of the year under consideration is 2.80%. Even the G.P. rate for the year....
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....ated 20% of the wage, vehicle, shop and shop repair expenses as unverifiable and unvouched. The AIR made the submission which is general in nature. The A/R of the appellant failed to file any evidence which prove that all the above expenses are fully vouched. Therefore I am the opinion that the observation of the Assessing officer is as per law that all the above expenses are not fully vouched. Therefore the cited decision of the A/R of the appellant not applicable in this case. The Assessing officer made the disallowance @ 20% which is unreasonable, excessive and without any basis. Therefore considering the facts of the case and nature of the expenses I restricted the disallowance @ 10% of the above expenses. Thus the disallowance comes ....
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....corded his statement wherein he has admitted that he is having PAN and filing returns of income with ITO, Ward-Neem Ka Thana. He has also explained source of cash as salary, interest and casual income. He has been employed with the assessee since April, 2012. Thus, the assessee has discharged its onus to prove the identity, creditworthiness and genuineness of the transactions. In support of his contention, he has relied upon the various decisions including the decision of the Hon'ble Supreme Court in the case of CIT vs. P. Mohanakala 291 ITR 278 (SC) and the decision of the Hon'ble Punjab & Haryana High Court in the case of CIT Vs. Varinder Rawlley 366 ITR 232 (P&H). The ld AR has thus submitted that the addition made by the A.O. may be del....
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....6.3 I have carefully considered the material before me. I find that the Assessing officer made the addition of Rs. 3,00,000/- u/s 68 of the I.T. Act making the observation that genuineness of the transaction and credit worthiness of the appellant is not proved. The A/R of the appellant submitted that the so called cash creditor explained the sources. This argument is not correct because the so called cash creditor fail to explain the source the cash deposited in bank account just before the loan given. The A/R further argued that initial onus discharged by the appellant is also not correct because the onus on the appellant to prove the genuineness of the transaction and credit worthiness of the so called cash creditor but he failed to pro....