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TMI Blog2024 (12) TMI 986X X X X Extracts X X X X X X X X Extracts X X X X ..... ition. Thus, ground no.1 is allowed. Adhoc disallowance being 10% of the total expenses - Expenses appear to be justifiable and, therefore, adhoc disallowance has been taken to the extent of 10% of expenses by the AO. Hence, the same requires to be deleted. Thus ground no.2 is allowed. - Dr. Brr Kumar, Vice President And Ms. Suchitra Kamble, Judicial Member For the Assessee : Ms. Vidhi V. Pandya, CA For the Revenue : Shri C. Dharani Nath, Sr. DR ORDER PER SUCHITRA KAMBLE, JUDICIAL MEMBER: This appeal is filed by the Assessee against order dated 02.11.2023 passed by the CIT(A), National Faceless Appal Centre (NFAC), Delhi for the Assessment Year 2017-18. 2. The assessee has raised the following grounds of appeal :- 1) Addition u/s 68 of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rutiny and notice under Section 143(2) of the Income Tax Act, 1961 was issued to the assessee on 22.09.2018 which was duly served upon the assessed. Notice under Section 142(1) of the Act was issued and thereafter show cause notice dated 24.12.2019 was also served upon the assessee for which the assessee submitted his reply. The Assessing Officer observed that the assessee made capital addition of Rs. 40,13,180/- during the year. In response to the queries, the assessee submitted that bifurcation of capital addition wherein Rs. 14,56,561/- was earlier withdrawal and remaining part is agricultural income of the assessee. The assessee submitted that the withdrawals were in the financial year 2015-16 and there is surplus fund as cash in hand a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee. 5. The Ld. AR submitted that there is a delay of 69 days in filing the present appeal as the assessee s Representative has not taken ample caution to file the appeal within the time limit. The reasons appear to be genuine and hence the delay is condoned. 6. The Ld. AR submitted that the CIT(A) was not justified in confirming the addition of Rs. 25,26,619/- on account of capital introduced in his proprietorship concern Sugi Petroleum as the same introduced in the capital account were out of genuine sources. The Ld. AR submitted that the assessee has submitted all the requisite details of the source thereby giving bifurcation of capital addition in respect of earlier withdrawals and the details of agricultural income. The assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eard both the parties and perused all the relevant material available on record. It is pertinent to note that as regards ground no.1, the assessee has given all the details related to agricultural income such as land records, crop details which were taken during the year and the same was produced through various bills produced before the Assessing Officer and placed before the CIT(A). The Assessing Officer as well as the CIT(A) has not taken cognisance of the same and, therefore, the Assessing Officer as well as the CIT(A) was not justified in making the said addition. Thus, ground no.1 is allowed. 9. As regards ground no.2 relating to adhoc disallowance of Rs. 37,856/- being 10% of the total expenses, the expenses appear to be justifiable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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