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TMI Blog2020 (2) TMI 1268X X X X Extracts X X X X X X X X Extracts X X X X ..... the business exigency for hiring such premises and payment of rent. Today s competitive business environment easy accessability is one of the prime factors required for attracting customers, and therefore, reasoning given by the assessee for incurring such rental incomes cannot be simply brushed aside. While denying the claim of the assessee, Revenue has not factored in the business exigencies as explained by the assessee. We are not convinced with narrow consideration of the Revenue authorities in rejecting claim of the assessee. Therefore, we delete the impugned addition incurred by the assessee towards rental expenses, and allow claim of the assessee. Unexplained cash credit - HELD THAT:- Reasons assigned by the ld.CIT(A) are no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... noticed by the assessing officer that the assessee has paid ₹ 4.50 lakhs to three companies viz. Gokul organizers P.Ltd., Shreeji Arcade P.Ltd., and Shridhar Reality P.Ltd. of ₹ 1.50 lakhs each as rent expenses for the premises hired at Vashu Nivas , Alkapuri Road, Baroda. On verification of details, it was assumed by the AO that there were some group concerns of the assessee operating from that premises, and therefore, expenses incurred was bogus to reduce its income. The ld.AO issued show cause notice to the assessee to explain the same with supporting details. It was explained by the assessee that the assessee is undertaking project in large scale, and since it requires to attract prospective middle class and high-end invest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thorities have denied the claim of the assessee on the ground that some of group concerns were situated in the same premises, and therefore, the claim of the assessee was bogus, and accordingly rejected. We find that lower authorities have not disputed the quantum of rent paid by the assessee nor business requirement of the assessee. Addition made by the Department on the assumption that some of the group of concerns of the assessee also situated in that premises, and therefore, it was a diversion of funds and as such a bogus claim. Before both the authorities, the assessee has explained the business exigency for hiring such premises and payment of rent. Today s competitive business environment easy accessability is one of the prime factors ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equired under section 68 of the Act. The ld.CIT(A) has accepted the explanation of the assessee except ₹ 28,000/-. This addition of ₹ 28,000/- has been confirmed on the ground that a sum of ₹ 25,000/- was found to be deposited in cash in the account of Balaji Trust on 7.1.2014. Therefore, the ld.CIT(A) construed that this cash must have been given by the assessee, which has been introduced in this trust. Similar is the finding with regard to other creditors; for example from Shree Ganga Family Trust, assessee has received fresh loan of ₹ 7,12,000/-. The ld.CIT(A) disbelieved explanation of the assessee qua only ₹ 10,000/-. After considering order of the ld.CIT(A) we are of the view that reasons assi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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