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Issues involved:
The judgment involves disputes on two grounds: (1) addition on account of credit card payment of Rs. 10,29,846/- and (2) addition of Rs. 1,41,250/- on account of unexplained cash credit. Issue 1 - Credit Card Payment Dispute: The Assessing Officer (AO) added Rs. 10,29,846/- as unexplained expenditure due to lack of details on credit card payments. The assessee explained that payments were inter-linked between different credit cards, with funds transferred from one to another. The CIT(A) directed the AO to delete the addition after verifying the explanations and documents submitted by the assessee. The Tribunal upheld the CIT(A)'s decision, noting that the AO was satisfied with the explanations provided and found no discrepancies in the transactions. Issue 2 - Unexplained Cash Credit Dispute: The AO added Rs. 1,41,250/- as unexplained cash credit due to a deposit in a bank account. The assessee explained that withdrawals from various bank accounts were redeposited, and the cash flow statement supported this claim. The CIT(A) directed the AO to delete the addition, considering the assessee's explanation and lack of evidence showing the cash withdrawals were utilized for other purposes. The Tribunal upheld the CIT(A)'s decision, stating that the AO failed to prove the funds were used differently and accepted the cash flow statement as evidence. In conclusion, the Tribunal dismissed the revenue's appeal, upholding the CIT(A)'s decisions on both disputes.
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