TaxTMI 
TaxTMI 
2022 (5) TMI 772
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....e the divorce he know nothing about her divorced wife. 2) The divorced letter/dissolution of marriage was submitted to hon'"ble CIT (A)-NFAC online vide ack no 157094211150721 (Refer Annexure I) but was neither mentioned nor considered in his appeal order Relief Claimed The appellant did file confirmation letter and ledgers during the assessment proceedings but could not give present address for reason beyond his control . Hence the addition is unjustified and may please be deleted Ground 2 The Hon'ble CIT(A)-NFAC has erred in confirming disallowance of Rs 1,00,000/- paid to mosque for providing free lunch to appellant's karagirs on the ground that no further evidences to substantiate the ground was submitted during the appeal proceedings even though the appellant did submit the same online vide ack no's 157094211150721/19042114692409/23042114712298. (Refer Annexure II) Relief Claimed The payment of Rs 1,00,000/- to mosque (wrongly debited as donation in books ) were incurred exclusively as staff welfare and are allowable as business expense u/s 37(1) of the Act. Ground 3 The Hon'ble CI....
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....d ledger account which is not justified on the part of Ld. CIT(A). 5.1 Per contra, the Ld. Departmental Representative (DR) relied on the order of Ld. CIT(A) and the Assessing Officer. 5.2 We find that the Assessing Officer made addition of Rs.52,66,833/- representing unsecured loans as unexplained cash credit u/s 68 of the Act. However, after verification of the documentary evidence filed during the course of appellate proceedings before the Ld. CIT(A), the addition has been restricted in case of loan received from M/s Firdos Mondal only, due to failure on the part of assessee to furnish her address to the Assessing Officer in remand proceedings. The relevant finding of the Ld. CIT(A) is reproduced as under : "4.2.3 From the remand report, it is clear that the appellant has furnished necessary evidences to substantiate the creditworthiness of the creditors in respect of two loan creditors namely Ms Fatima B. Shaikh, proprietor of M/s B K Art and Sri Bablu N. Shaikh, proprietor of M/s Karisma Art. Further these two creditors were also summoned in course of the remand proceedings and their statement was recorded wherein they both accepted to have advanced unsecured lo....
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....o show that the income is from any particular source. By submission of the copy of the income tax return, the bank account transactions etc. the appellant has merely tried to substantiate the identity and the capacity of the creditor. But by its failure to facilitate the examination of the said creditor, the appellant has prevented the assessing officer to verify the genuineness of the transactions. Accordingly it cannot be held that the appellant has discharged the onus cast upon it to prove the genuineness of the transactions. Hence in my considered view the genuineness of the loan transaction alleged to have been entered with Mrs Firdos Mondal is not substantiated. However from the ledger account of this creditor as appearing in the books of the appellant, it is noticed that as on 01/04/2011 there is a opening debit balance of Rs. 8, 18,178/- against this party. An aggregate amount of Rs.18,55,678/- has been received from this party on various dates and an aggregate amount of Rs.5,16,150/- has been repaid to the party during the year leaving an outstanding credit balance of Rs.5,21,351/. Since the genuineness of these transactions have not been established by the appellant, the ....
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....bited as donation. The above amount was disallowed by the AO as the appellant failed to furnish any documentary evidence in support of the same. In course of the appellate proceedings it was contended as under: The appellant humbly submits that the said amount though debited to P/L A/c as donation, it is paid to the mosque which is near to its business premises which provides free lunch to the majority labourers of the appellant. Therefore, the said payment of Rs.1,00,000 is in the nature of staff welfare incurred exclusively and necessarily for business and is allowable under section 37 (1) of the income tax act, 1961. 4.3.1 However it is seen from the remand report of the assessing officer that no corroborating evidence relating to this expenditure was furnished by the appellant even in course of the remand proceedings. During the appellate proceedings also no further substantiate on the above claim has been offered. Therefore, I find no reason to interfere with the conclusions of the assessing officer. Accordingly, this ground is dismissed". 5.8. It is evident from the letter of mosque produced by the assessee that the free lunch used to be provided....