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TMI Blog2022 (5) TMI 680X X X X Extracts X X X X X X X X Extracts X X X X ..... ns of the assessee. No exempt income has been credited by the assessee in this account. All the expenditure is related to the business of the assessee. No significant interest has been debited in the Profit Loss Account. Therefore, no disallowance u/s 14A is warranted here - we direct Ld. AO to restrict disallowance u/s 14A to Rs.29,711/-. The ground stand partly allowed. Unexplained cash credit u/s 68 - Addition made on the ground that the sales being refelected by the assessee were fabricated to accommodate the cash deposits and credits are appearing in the account of Ms. Maya Dalmia (wife of the assessee) on various dates - HELD THAT:- We find that M/s Vinayaka Tea Company has admitted sale of Rs.34.26 Lacs and earned profit of Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. - ITA No. 649/Chny/2020 - - - Dated:- 5-5-2022 - HON BLE SHRI V. DURGA RAO , JUDICIAL MEMBER AND HON BLE SHRI MANOJ KUMAR AGGARWAL , AM Appellant by : Shri T. S. Lakshmi Venkataraman ( CA ) Ld. AR Respondent by : Shri ARV Sreenivasan ( Addl. CIT ) Ld. DR ORDER Manoj Kumar Aggarwal ( Accountant Member ) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2013-14 arises out of the order of learned Commissioner of Income Tax (Appeals)-, Coimbatore-3 [CIT(A)] dated 19.02.2020 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) of the Act on 22.03.2016. 2. The grounds raised by the assessee read as under: 1. On the facts and circumstances of the case the learned CIT (A)-3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the impugned order. 2. The Ld. AR advanced arguments to assail the additions which have been controverted by Ld. Sr. DR. Having heard rival contentions, our adjudication to the subject matter would be as given in succeeding paragraphs. The assessee being resident individual is stated to be engaged in trading of tea and fabric under proprietary concern namely M/s. Vinayaka Tea Company. It was assessed for the year u/s 143(3) on wherein it was saddled with disallowance u/s 14A, additions u/s 68 and adhoc addition of travelling expenses. All these additions / disallowances, upon confirmation in the impugned order, are in further challenge before us. 3. Disallowance u/s. 14A 3.1 The assessee earned exempt income of Rs.1,250/- and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 68 4.1 It transpired that the assessee deposited cash on various dates in bank account of M/s. Vinayaka Tea Company. The same are detailed in para-7 of the assessment order. In support, the assessee furnished extract from cash book. However, the said explanation was held to be not maintainable as the nature of source of deposits was not clarified and accordingly, the amount of Rs.26.74 Lacs was added as unexplained cash credit u/s 68 of the Act. Upon further appeal, Ld. Ld. CIT(A), in the light of remand report, restricted the addition to Rs.21.23 Lacs against which the assessee is in further appeal before us. 4.2 We find that the additions have been made on the ground that the sales being reelected by the assessee were fabricate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowance of 30% to personal element which resulted into another addition of Rs.0.98 Lacs in the hands of the assessee. The Ld. CIT(A) noted that the correct figure as claimed by the assessee was Rs.2,99,960/- which was to be allowed to render justice. However, in the very next line, Ld. CIT(A) sustained addition of Rs.1.50 Lacs which is much more than the addition made by Ld. AO. 5.2 Considering that the correct figures are Rs.2,99,960/-, we direct Ld. AO to disallow 10% of the same to account for personal element. The addition stand restricted to Rs.30,000/- and the balance addition stand deleted. This ground stand partly allowed. Conclusion 6. The appeal stand partly allowed in terms of our above order. Order pronounced ..... X X X X Extracts X X X X X X X X Extracts X X X X
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