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2015 (11) TMI 183 - ITAT DELHILong Term Capital Gains - whether land is agricultural and transferred without sale deed ? - CIT(A) deleted the addition - whether the land was under developed, agricultural and provisions of section 50C of the IT Act, 1961 were in-applicable? - Held that:- CIT(A) has thoroughly gone through the assessment order alongwith the Remand Report and Rejoinder to the Remand Report as well as the other evidences filed by the assessee. Ld. CIT(A) has decided the issue in favour of the assessee by respectfully following the order of Navneet Kumar Thakkar. Versus Income-tax Officer, Ward - 4. [2007 (3) TMI 317 - ITAT JODHPUR] which is clearly similar to the facts and circumstances of the present case wherein held that unless property transferred has been registered by sale deed and for that purpose value has been assessed and stamp duty has been paid by parties Sec.5OC inserted by Finance Act, 2002 with effect from 1-4-2003, cannot come into operation. It has been further held by the Hon'ble Court that in such a situation, position existing prior to Sec. 5OC would apply and onus would be upon revenue to establish that sale consideration declared by the assessee was understated with clinching evidence. The property in question has been transferred by executing an agreement which was not registered with registering authority, therefore, in our view Sec. 5OC could not have come into operation and the addition in dispute has rightly been deleted by the Ld. CIT(A) - Decided against revenue. Disallowance of car running expenses & telephone expenses - CIT(A) deleted the addition - Held that:- The car running for personal use is totally against the provision of Income Tax Act because it is made on the basis of assumption and presumption. Similarly, for telephone expenses debited to the profit and loss account are only in respect of the telephone which is situated at the business premises of the assessee. The assessee furnished full details of telephone bills and this addition was also made on the basis of assumptions and presumptions only. We also find that the AO examined the complete books of account and found no defect in the same, hence, the action of the CIT(A) for estimation of disallowances are against the principles of Income Tax Act. The assessee has furnished all the details before the AO and the AO has not given sound reason for observing ‘person use’. Therefore, both the additions were rightly deleted by the Ld. CIT(A), which does not need any interference on our part - Decided against revenue.
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