9911796707
TMI Blog2017 (4) TMI 1542X X X X Extracts X X X X X X X X Extracts X X X X ..... observed that cross examination was declined by the assessee. Nowhere the Revenue could prove or establish that this amount represents the cash paid or any evidence that the amount have been received by the recipients. The Ld. CIT was also not sure where the amount have been paid or payable. The Revenue has to prove that these documents represents unaccounted payments by either direct evidence or corroborative evidence which was not so in this case. Hence the addition is hereby deleted. Disallowance under section 14A - DR argued that the investment for earning exempt income were made from mixed funds hence disallowance under section 14A has been made as per Rule 8D - HELD THAT:- On perusal of the records it was found that no statemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was carried out at the residential and business premises of Modern Group of cases on 17/03/2010. During search certain documents were found and seized. The documents were numbered as A-5(pages 63 to 71) [Party A-1]. It was alleged that this document contains details of salary paid in cash to the persons namely Sh. A.K. Aggarwal, Sh. P.K. Jain and Sh. H.S. Oberoi, the key employees of Modern Dairies Ltd. outside books of accounts. The documents have been perused in detail. 4. The AO has recorded the statement of Sh. A.K. Aggarwal and Sh. P.K. Jain during the assessment proceedings. Statement of Shri. K.K. Goel was recorded under section 132(4) during the search proceedings. The AO in total made addition of ₹ 19,63,000/- on account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made on the basis of loose papers by making certain presumption which are found to be untenable, contrary to the other evidence on record. 7. Ld. DR has argued that the payment of cash towards the part salary is general practice in the dairy industries where the generation of the cash is expected out of unaccounted sales. He placed reliance on the order of the Ld. CIT(A). 8. Having heard both sides and examined the decision of the Ld. CIT wherein the Ld. CIT(A) derived the strength from the statements recorded during the assessment proceeding. The Ld. CIT(A) also mentioned that the assessee has declined to cross examine the witness. 9. We have perused the statements given by Sh. K.K.Goel during search proceeding and also of Shri. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were filed before CIT(A). 3. That the leaned CIT(A) has erred in upholding the addition on account of interest as per Rule 8D without any satisfaction of the A.O./CIT(A) about the correctness of claim of the appellate as per Sec. 14A(2) of the I.T. Act. When the complete detail a well as the working have been submitted that no interest bearing funds have been utilized for purpose of investment and there were sufficient profit available for the investment made, hence disallowance on the basis of Rule 8D not called for, hence relief be allowed. 4. That the learned CIT(A) has erred in upholding the addition of ₹ 18305/- as Adm. Expenses as per Rule 8D when the same is not applicable, further without pointing expenses actuall ..... X X X X Extracts X X X X X X X X Extracts X X X X
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