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2017 (2) TMI 597 - ITAT AMRITSARAddition under section 41(1) - Held that:- In the present case, the assessee has not forfeited the advances, as it had been declaring the liabilities in its balance-sheet. The assessee though in various letters had been threatening the prospective buyers that their security deposits will be forfeited but did not actually forfeit the same, as it continued to declare such advances in the balance-sheet. Hon'ble Delhi High Court in the case of CIT v. Jain Exports Pvt. Ltd. (2013 (5) TMI 690 - DELHI HIGH COURT ), under similar facts and circumstances has held that the liability on account of creditors, which were being declared by the assessee for the last more than 25 years in favour of the assessee, by holding that the liability had not ceased to exist. We further find that the assessee during the subsequent years had adjusted the advances against sale of plots as is apparent from the paper book 2, where against Sl. Nos. 4, 6, 11, 17 and 18 the plots were sold and the amount of deposit was adjusted. The fact of part of advances having been adjusted in subsequent years itself proves that the liability had not ceased and, therefore, also, the addition under section 41(1) of the Act was not justified and the learned Commissioner of Income-tax (Appeals) has rightly deleted the same. - Decided in favour of assessee Addition of commission received - Held that:- We find that the assessee had filed complete details of names and addresses of the persons from whom it had received commission at 1 per cent. of the sales consideration. The Assessing Officer assumed commission to be 2 per cent. in a few cases and 1 per cent. in a few cases and arbitrarily made an addition of ₹ 4,55,768. The Assessing Officer did not bother to examine any of the persons from whom the commission was received to find out the rate of commission. Therefore, the learned Commissioner of Income-tax (Appeals) has rightly deleted the addition. - Decided in favour of assessee
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