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TMI Blog2015 (6) TMI 793X X X X Extracts X X X X X X X X Extracts X X X X ..... on 25.10.2007 declaring total income of Rs. 3,13,080. In the assessment completed under section 143(3) vide order dated 30.11.2009, the total income of the assessee was computed by the A.O. at Rs. 25,61,415 after making the following additions. Sl.No. Particulars Amount in Rs. 1. Unexplained cash credits under section 68 of the Act 6,13,262 2. Disallowance of interest under section 40(a)(ia) 5,46,639 3. Income from other sources 5,91,619 4. Unexplained journal entries 2,54,729 5. Disallowance of VAT under section 43B 24,894 6. Disallowance of unverifiable expenditure 2,72,517 2.1. Against the order passed by A.O. under section 143(3), an appeal was preferred by the assessee before the Ld. CIT(A) disputing all t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e arguments of both sides and also perused the relevant material on record. As regards the issue involved in Ground No.1 relating to the addition made on account of unsecured loans treating the same as unexplained cash credits under section 68 of the Act, the Learned Counsel for the Assessee has invited our attention to the relevant details placed at page No.12 to show that the amounts added by the A.O. and confirmed by the Ld. CIT(A) actually represented loans and advances given by the assessee and that too in the earlier years and not in the year under consideration. He has contended that these amounts representing advances given thus cannot be added under section 68 of the Act. Although the learned D.R. has agreed in principle with this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rendered vide its order dated 20.05.2011 in ITA.No.3317/Mum/2010, is not controverted by the learned D.R. He, however, has contended that the claim of the assessee of having received declarations in Form 15G from all the payees of interest requires verification by the A.O. Since the Learned Counsel for the Assessee has no objection in this regard, we restore this issue to the file of A.O. for deciding the same afresh, after verifying the stand of the assessee in the light of decision of the Tribunal in the case of Vipin B. Mehta (supra). Ground No.2 of the appeal is accordingly treated as allowed for statistical purposes. 5. As regards the issue involved in ground No.3 relating to the addition made by the A.O. and confirmed by the Ld. CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e learned D.R. and since the Learned Counsel for the Assessee also has no objection in this regard, we restore this issue to the file of the A.O. for deciding the same afresh, after verifying the explanation of the assessee offered before the Tribunal. Ground No.3 is accordingly treated as allowed for statistical purposes. 7. As regards the issue involved in ground No.4 relating to the addition made by the A.O. and confirmed by the Ld. CIT(A) on account of journal entries, it is observed that the amounts receivable from the various parties amounting to Rs. 2,54,729 were squared off by the assessee by transferring the balances in the said accounts to one creditor namely Rajesh Chemical Company by way of journal entry. Since the explanation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this issue to the file of A.O. for deciding the same afresh, after verifying the explanation of the assessee from the relevant record. Ground No.4 is accordingly, treated as allowed for statistical purposes. 9. As regards the issue involved in ground No.5 relating to the disallowance made by the A.O. and sustained by the Ld. CIT(A) out of various expenses on account of unverifiable element involved therein, it is observed that out of total expenses of Rs. 13,62,591, sum of Rs. 2,72,517 being 20% of the total expenses was disallowed by the A.O. on the ground that the expenses claimed by the assessee were not fully verifiable. Ld. CIT(A), however, found from the relevant order sheet entry that disallowance of 20% was liable to be made as pe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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