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2018 (3) TMI 1713 - ITAT RAIPURDisallowance u/s. 40A(3) - cash payment towards purchase of land which was stock in trade - Held that:- Once the Appellate Court and the Tribunal have concurrently found that the explanation offered by the assessee as to why the cash payments made to the sellers is acceptable, the same does not involve any substantial question of law as the reasoning assigned and the interpretation applied by the Tribunal and the CIT (Appeals) are duly supported by the judicial precedents. Expenses on account of payment of registration charges including Stamp duty - Held that:- It is true that the Stamp duty and the registration charges are borne by the purchaser. It is equally true that sometimes it is agreed between the parties that part of the Stamp duty/ registration charges shall be borne by the seller. In the case in hand, we find that the sellers have agreed to bear the charges over and above, the charges mentioned in the deed. We find that after due verification, the ld. CIT(A) has restricted the addition to ₹ 169450/- which calls for no interference. Ground is accordingly dismissed. Addition u/s. 68 - Held that:- A.O. not only added the share application money received from the three companies but has also added ₹ 2.90 crores being share application money received from Shri Rakesh Pandey. We find that Shri Rakesh Pandey who is a company director was summoned by the A.O. at the fag end of the assessment i.e. 27.03.2014. At that point of time, Shri Rakesh Pandey was in Mumbai, therefore, could not attend. But we find that the return of Shri Rajesh Pandey was also scrutinized and in his balance sheet his investment in the shares in assessee company has been accepted. We also find that in the immediately subsequent two assessment years, the investment in shares by Shri Rakesh Pandey has been accepted by the A.O. after thorough scrutiny and in those years, Shri Pandey also appeared before the A.O. Thus, it can be seen that as in the case of these share applicant companies, investment made by Shri Rakesh Pandey has also been accepted by the Assessing Officer in subsequent assessment years. Addition on account of brokerage and commission expenses - Held that:- The nature of business of the assessee is that it cannot purchase/sell lands without engaging the brokers. The A.O. has nowhere disputed that the assessee has purchased lands at various places. Therefore, it can be safely concluded that the services of the brokers must have availed by the assessee. It is also true that all the payments have been made by account payee cheques subject to TDS wherever applicable. These clinching evidences cannot be brushed aside lightly. Considering the facts in totality, we decline to interfere. This grievance is also dismissed.
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