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2012 (8) TMI 1057 - AT - Income TaxAddition on account of deemed dividend - Held that:- The impugned amounts were received by the assessee through account payee cheques against sale of land owned by the assessee in the normal course of business, therefore, it cannot be branded as loan and advances. We have perused the agreement to sale. As per clause 2 of the said agreement, the amount of ₹ 2,53,60,000/- was agreed to be given to the assessee by the purchaser and part of the payment was received through cheque. The assessee was also supposed to get conversion of the land within two months. As per clause 10 the purchaser was free to do the developmental work on the land and was also free to sell the same to any third party for which the assessee had no objection. It cannot be said that it was a loan or an advance to the assessee. The contents of the sale agreements are very much clear that it was a clearcut agreement of sale. No contrary facts or decision was brought to our notice by either side and more specifically the Revenue. In view of these facts, we are not in agreement with the conclusion drawn in the assessment order and affirm the stand of the ld. CIT(A) in accepting the claim of the assessee, resultantly, there is no merit in the appeal of the Revenue.
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