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TMI Blog2017 (9) TMI 1347X X X X Extracts X X X X X X X X Extracts X X X X ..... V of the block is concerned it is only a depreciated book value and thus, the amount of repairs being too high cannot be a ground for making the disallowance - Decided in favour of assessee Disallowance made by the AO on account of unexplained cash deposits -Held that:- Entries have been made in the capital account of Smt. Kamla Lamba of ₹ 19,41,192 and also the corresponding entries were made in the cash account and of M/s K.C. Industries, a sundry creditor. Therefore, the availability of cash in hand was increased on 01.04.2010 after reversing these entries in the books of accounts. In view of these facts, hold that cash deposits were made out of the balance available in the books of accounts. Thus,find no justification in the action of the AO and delete the addition - Decided in favour of assessee - ITA No. 395/JP/2016 - - - Dated:- 15-9-2017 - SHRI BHAGCHAND, AM AND SHRI KUL BHARAT, JM For The Revenue : Shri R.A. Verma (Addl. CIT) For The Assessee : Shri Kranti Mehta (CA) ORDER PER SHRI KUL BHARAT, JM. This appeal by the Revenue is directed against the order of Ld. CIT (A)-22, Alwar, dated 26.02.2016 pertaining to A.Y. 2011-12. The Rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ering the submissions partly allowed the appeal. While partly allowing the appeal, the Ld. CIT(A) deleted the addition made on account of unverified unsecured loans of ₹ 58,75,673/-. Ld. CIT(A) deleted the disallowance on depreciation and restricted the disallowance of ₹ 1,47,328/- as against ₹ 4,72,848/- made by invoking the provision of Section 40a(ia) of the Act. Ld. CIT(A) further deleted the disallowance in respect of the expenditure following u/s 43B of the Act, in respect of the disallowance of expenditure related to building repairs the Ld. CIT(A) deleted the same, in respect of unexplained cash deposits of ₹ 14,85,000/- the Ld. CIT(A) deleted the same. However, in respect of adhoc expenses, the ground was not pressed before Ld. CIT(A), therefore, same was rejected. 4. Now, the Revenue is in present appeal. 5. Ground No. 1 of the Revenue s appeal is against deleting the addition made by the AO on account of unexplained cash credits for ₹ 55,94,288/-. 5.1 Ld. D/R vehemently argued that the Ld. CIT(A) was not justified in deleting the disallowance. He submitted that the AO has given a categorically finding that the assessee has failed to pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccount and ledger account for the succeeding three years has been filed to prove that loan has been repaid through the banking channels. The appellant has also filed a copy of the loan sanction letter from the bank to substantiate the credit of ₹ 21,96,878/- from Bank of Baroda. 4.8 Having considered the details evidence placed on record in the course of appellate proceedings, I find that as regards the loan received from Mr. Gaurav is concerned; no addition is warranted as the amount of loan has been carried forward from the previous years. Further, as regards a loan of ₹ 33,97,410 from K.C. Industries is concerned, I find that appellant has filed a copy of the confirmation along with PAN, Photo ID of the proprietor of K.C. Industries and also it is stated that the said firm was a registered dealer having VAT/CST number as well as Central Excise registered number. A copy of the purchase bills from material purchased from the firm has been placed on record and also proof of closure of that business in the records of state Government as on 31.03.2013 has been filed. The appellant has also filed a copy of the bank account showing the payment of an amount of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the assets purchased during the year could not be produced. The appellant has in the course of present proceedings filed a copy of the purchase bill for computer and TV on which depreciation has been claimed. Therefore, I hold that there is no justification in the action of the AO in making a disallowance of depreciation. Thus, I delete the disallowance of ₹ 13,305 made by the AO on this account. 6.4 The Ld. CIT(A) has given a finding on fact, that the assessee has produced copy of purchase bill for computer and television. 6.5 In our view, it is sufficient to place on record the purchase bills but some evidence suggesting that assets was to be use for business purpose in the absence of such evidence in our view, no depreciation cannot be allowed. Therefore, the finding of the Ld. CIT(A) on this issue is reversed and the finding of the AO is restored. Thus, Ground of the revenue is allowed. 7. Ground No. 3, is against in deleting the disallowance made by the AO on account of building repair expenses for ₹ 5,97,825/-. 7.1 Ld. D/R supported the assessment order. 7.2 On the contrary, Ld. Counsel for the assessee supported the order of the Ld. CIT(A). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duce any books of accounts for verification. Ld. D/R submitted that the Ld. CIT(A) failed to appreciate that the Assessing Officer in remand report stated that on perusal of cash book it is revealed that the assessee had shown opening cash balance as on 01.04.2010 of ₹ 22,28,531/- whereas as per income tax return filed for the A.Y. 2010-11 cash in hand as on 31.3.2010 was shown at ₹ 2,87,338/- only. It is also recorded by the AO in remand report that the assessee was maintaining bank a/c no. 17189 with HDFC and a/c No. 87603 with PNB but the assessee did not cooperate by way not furnishing the requisite details or production of copy of bank book of PNB account maintained by assessee. Under these facts, the Ld. CIT(A) ought to have confirmed the addition. 8.2 On the contrary, Ld. Counsel for the assessee reiterated the submissions as made before the Ld. CIT(A). Ld. Counsel for the assessee supported the order of the Ld. CIT(A). 8.3 We have heard the rival contentions, the Ld. CIT(A) decided this issue in para 9.5 to 9.7 of his order, which is reproduced as under:- 9.5 I have perused the assessment order as well as remand report of the AO, submissions made in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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