TaxTMI 
TaxTMI 
2022 (7) TMI 1403
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....he Assessment Year 2012-2013. 2. The assessee has raised the following grounds of appeal: 1.1 The order passed u/s.250 on 21.08.2016 for A.Y.2012-13 by CIT(A)-5,Abad, confirming disallowances made by AO towards interest expenses Rs,9,59,093, addition towards stamp duty & registration expense of Rs.7,22,272 and motor car expense of Rs.1,23,960 is wholly illegal, unlawful and against the principles of natural justice. 1.2 The Ld. CIT(A) has grievously erred in law and or on facts in not considering fully and properly the submissions made and evidence produced. The Ld. CIT(A) has erred in passing a non-speaking order and merely confirming the findings given by AO. 2.1 The Ld. CIT(A) has grievously erred in law and or on facts in makin....
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....e taxable income of the assessee. Thus, the AO disallowed the sum of Rs. 9,59,093/- (Rs. 10,67,198/- minus Rs. 1,08,105/-) and added to the total income of the assessee. 5. Aggrieved assessee preferred an appeal before the learned CIT-A, who partly confirmed the order of the AO by observing as under: 4.3.1. During the course of appellate proceedings, the appellant has contended that most of the funds were received in earlier years and there was no finding in the relevant year that the borrowings were utilized for non-business purposes. Therefore, no disallowance could be made in the current year towards interest on opening balance.-. In this regard, the appellant has relied upon decision of Sridev Enterprises 189 ITR 192 Karnataka HC whe....
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.... book and contended that the interest expenses was incurred for the purpose of the business and therefore the same is eligible for deduction. 8. On the other hand the learned DR vehemently supported the order of the authorities below. 9. We have heard the rival contentions of both the parties and perused the materials available on record. From the preceding discussion, we note that the impugned amount borrowed by the assessee has been diverted for making the contribution in the partner's capital account, investment in the lands and interest free/interest bearing advances. As far as the contribution in partner's capital account is concerned, we note that the assessee has shown interest income from the partners which is chargeable to tax. T....
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.... proceedings found that the assessee has incurred certain expenses amounting to Rs. 7,22,272/- on purchase of property such as stamp duty charges and registration charges but failed to explain the source of such expenses. Therefore the AO treated the same as unexplained cash expenses and added to the total income of the assessee. 12. Aggrieved assessee preferred an appeal before the learned CIT-A, who confirmed the order of the AO by observing as under: 4.4. With regard to undisclosed cash expenses, the AO has disallowed expenses towards stamp duly and registration charges, amounting to Rs.7,22,272/- tor purchase of land on the ground that these were not reflected in the bank account or capital account. The appellant has contended that t....
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....d on pages 42 to 43 of the paper book. There was no doubt raised by the authorities below with respect to the cash book filed by the assessee. Since, the expenses incurred in cash have been duly recorded in the books of accounts, the source of cash for such expenses cannot be doubted. The cash book is a summary of the transactions which are carried out in cash demonstrating the source of receipt of cash and payment of cash. Thus, it cannot be said that such expenses were incurred by the assessee outside the books of accounts. The issue on hand relates to the cash payment which was recorded in the cash book but corresponding receipt of cash was nowhere doubted by the authorities below, accordingly, we set aside the finding of the learned CIT....
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.... no force in the argument of the appellant and the disallowance made by the AO is justified and the same is confirmed. 20. Being aggrieved by the order of the learned CIT (A), the assessee is in appeal before us. 21. The learned AR before us filed a paper book running from pages 1 to 43 and contended that the assessee is a partner in many partnership firm and drawing income therefrom which is chargeable to tax under the head business and profession except share of profit. Thus, it cannot be said that the assessee does not have any business income. 22. On the other hand the learned DR vehemently supported the order of the authorities below. 23. We have heard the rival contentions of both the parties and perused the materials available o....