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TMI Blog2014 (8) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... account of disallowance of land development charges and other related expenses inspite o the failure on the part of the assessee to produce books of accounts and other documentary evidences for proving the genuineness of the expenditure claimed u/s.37(1) of the I.T.Act, 1961. [2] On the facts and circumstances of the case and in law, the Ld.CIT(A) has erred in deleting the additions made on account of unexplained investment u/s.69 even though the assessee failed to explain the source of investment. [3] On the facts and circumstances of the case and in law, the Ld.CIT(A) has erred in deleting the additions made on account of unexplained cash credits u/s.68 inspite of the failure on the part of the assessee to produce necessary documentary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... & Bonus"; "General Expenses"; "Bank Charges" and "Audit Fees" which aggregates to Rs. 1,26,460/- and comes out at Rs. 31,615/-. The AO also made addition of Rs. 10 lacs as unexplained investment and addition of Rs. 3,44,659/- as "on-money". 5. First ground is against disallowance of expenses claimed as land development charges. The ld.Sr.DR submitted that the ld.CIT(A) was not justified in deleting the addition and he submitted that the assessee had claimed such a huge expenditure. In support of expenditure claimed no bills or vouchers were produced. Therefore, the AO was justified in making the disallowance. He further submitted that the onus is on the assessee to prove that expenditure have been incurred for carrying out the business ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nditure claimed in the P&L account can be allowed without any supporting evidence. The ld.CIT(A) has also not given any finding as to how he has arrived at the conclusion that the expenses so claimed by the assessee are correct without seeking any remand report from the AO. Therefore, this issue is restored back to the file of ld.CIT(A) to decide the same afresh. Ld.CIT(A) is hereby directed to pass a speaking order after obtaining the remand report from the AO. Needless to say that while passing the order, ld.CIT(A) would also afford opportunity to the assessee for producing the evidences, if any, in support of its claim and the ld.CIT(A), on receipt of such evidence, would seek comments of the AO and pass a decision afresh. 7. Ground No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... show cause as to why the same may not be considered as unexplained investment made by the co. and may not be added back to the total income of the 'a' company....... ." 12.1. In response, the AR simply signed the order sheet and did not comment. However he orally submitted that these entries might be reflected in the bank account, the copy of which had already been furnished along-with a copy of the bank book. On verification, the contention of the AR was found partly correct as the entries aggregating Rs. 30,81,850/- were reflected in the Bank statement submitted which shows withdrawals of Rs. 30,00,000/- on 11/01/2007 and Rs. 81,950/- being withdrawn on 19/03/2007 in the name of M/s.CEE AAR Decors Pvt.Ltd. By this it can be inferred tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orders of the authorities below. We find that the AO has observed that there is an increase in unsecured loans and the assessee was asked to explain the increase in secured loans and to furnish the details. The AO observed that the assessee-company failed to produce the details of the persons/parties from whom these loans had been claimed to have been taken. Therefore, the AO proceeded to make addition of Rs. 3,44,659/- in the total income of the assessee. We find that the ld.CIT(A) has given a finding on fact that this amount does not represent cash credit but this is in fact loan/advance given. However, no remand report was called for. Therefore, this issue is also restored back to the file of ld.CIT(A) to decide it afresh after seeking ..... X X X X Extracts X X X X X X X X Extracts X X X X
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