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TMI Blog2011 (8) TMI 1186X X X X Extracts X X X X X X X X Extracts X X X X ..... f the revenue ex-parte qua the assessee. 2. The ground no.1 of the revenue is as under:- [1] On the facts and circumstance of the case and in law, the Ld. CIT(A) has erred in deleting the addition made on account of unexplained cash credit u/s 68. 3. The facts till the assessment stage are noted by the Ld. CIT(A) in para 2 of his order, which is reproduced below: 2. The facts relating to the above additions are that during the course of assessment proceedings, the Assessing Officer noticed that there are unsecured loans from various persons appearing in the balance-sheet, he, therefore, asked the appellant to furnish evidences to prove identity of the depositors, genuineness of the transaction and their creditworthiness. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l piece of agricultural land and are not assessed to tax and only copy of their bank statements has been furnished, and relying upon certain decisions discussed in para 5.4. to 6 of the order, he added the entire amount of ₹ 7,48,100/- being unsecured loans appearing in the above names. The A.O. also disallowed interest expense of ₹ 96,895/- relating to the above unsecured loans. 4. Being aggrieved, assessee carried the matter in appeal before Ld. CIT(A) who has deleted the addition and now, the revenue is in appeal before us. 5. It is submitted by the Ld. D.R. of the revenue that the addition u/s68 of ₹ 7,48,100/- was made by the A.O. in respect of four different persons of the same family and the major amount is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have considered these submissions, perused the material on record and have gone through the orders of authorities below. We find that it is noted by he A.O. in para 5.2 of the assessment order that it was submitted before him that confirmation of these loan creditors were filed and documents showing the agricultural land have also been furnished and there is no mention regarding any document having been furnished regarding crop grown, bills of crop sold and expenses incurred thereon etc. and it has been so noted by the A.O. in para 5.3 of the assessment order. Regarding this loan of ₹ 5 lass from Shri D K Lathia, there was no contention raised before the A.O. that this loan is out of various secured loans taken by this person from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tage are noted by the Ld. CIT(A) in para 5.1 of his order which is reproduced as under: 5.1. The Assessing Officer has discussed the above disallowance in para 6.1 to 6.9 of the order, wherein he has mentioned that the activity of embroidery constitutes only value addition whereby the finished wearable fabrics are made more attractive and no different product is manufactured by applying the process of embroidery and it cannot be said manufacture of any article or thing has taken place, accordingly, the activity of embroidery cannot be manufacture and, therefore, the machinery used in the process of embroidery is not eligible for additional depreciation, as per the provisions of section 32(l)(iia) of the Act. The Assessing Officer, there ..... X X X X Extracts X X X X X X X X Extracts X X X X
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