2019 (10) TMI 1615

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....ome Tax Act, 1961 (the Act) concerning AY 2013-14. 2. The substantive grounds of appeal raised by the assessee read as under:- "1. The learned CIT(A) has erred in law and on facts in upholding the ex-parte order u/s. 144 made by the AO without appreciating and considering the facts that various submissions were duly furnished by the appellant in response to notices of the AO. warranting no ex-parte order. 2. He has erred in law and on facts in confirming income determined at Rs. 89,66,730/- u/s. 144 in place of return income of Rs. 815/- in as much as that there was no justification for making such high pitched order. 3. He has erred in law and on facts in confirming following additions aggregating Rs. 76,64,910/- as detailed below w....

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....the assessee had filed the copy of receipt issued by the political party as well as the copy of registration of said party by the Election Commission of India by letter dated 19.01.2001 bearing No. 56/210/98-J.S.III/835. The bank statement filed by the assessee also reflects that payment has been made through banking channel to the aforesaid done. Therefore, we see no justification in the action of the AO for denial of disallowance claimed under s. 80GGC of the Act merely on the ground that notice issued under s. 133(6) of the Act was returned unserved. We thus find merit in the plea raised on behalf of the assessee for allowability of aforestated deduction of Rs. 7,85,000/- claimed under s. 80GGC of the Act. The action of the CIT(A) also a....

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....en that the amount of capital has been introduced through banking channels. In the wake of such facts, the principles laid down by the Hon'ble Gujarat High Court in CIT vs. Odedara Construction (2014) 362 ITR 338 (Guj) would squarely apply. Hence, deeming fiction created by Section 68 of the Act could not be invoked in the hands of the assessee-partnership firm. We thus reverse the action of the lower authorities and direct the AO to delete the addition of Rs. 44 Lakhs on this score. 6.4 Disallowance of expenses of Rs. 8,67,610/- and disallowance of expenses of Rs. 11,12,300/- under s.40A(3) of the Act incurred towards conversion of land to non-agricultural land for the purposes of development thereof: We notice that the assessee firm is s....