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2013 (9) TMI 641 - AT - Income TaxDeemed dividend - section 2(22)(e) - Loan or advances - assessee claimed that this amount shown as loan in the assessee's balance-sheet was not a loan but an advance received for sale/purchase of land - Held that:- it would be in the fitness of things for the issue of deemed dividend under section 2(22)(e) of the Act to be remitted to the file of the learned Commissioner (Appeals) for de novo consideration by him - matter remanded back. Cash payment of expenditure in excess of ₹ 20,000 - Section 43A(3) r.w.r. 6DD - Held that:- assessee's arguments that the transactions were genuine; that the cash payments were made in the absence of proper banking facilities being available in Devanahalli, that the payments were made on consideration of business expediency, etc., are not acceptable as the assessee has failed to prove with any cogent evidence that it was covered by exceptional circumstances as per the exemption clause under section 40A(3) read with rule 6DD. It is also seen that the assessee has failed to establish that Devana halli taluk of Bangalore District had no banking facilities at the time these payments were made. In this view of the matter, we have no hesitation in upholding and sustaining the disallowance of ₹ 17,58,527 (being 20 percent. of the amount paid in cash, i.e., ₹ 87,92,635) made by the Assessing Officer under section 40A(3) of the Act - Decided against assessee. Disallowance of Commission and brokerage expenses - Held that:- Out of the total expenses of ₹ 92,20,663 claimed under the head brokerage and commission, we find that the Assessing Officer holding that in this line of business of land transaction the average percentage of commission and brokerage is one per cent., disallowed the balance of ₹ 33,52,658. It is seen that the learned Commissioner (Appeals) examined the matter in detail and came to the view that expenses on commission and brokerage charges, on which TDS had been deducted and remitted to the treasury in the instant case were genuine as per the facts placed before him and accordingly allowed the assessee relief of ₹ 29,10,316 and sustained the disallowance to ₹ 4,44,342. Before us learned counsel for the assessee has merely reiterated the submission made before the learned Commissioner (Appeals). No cogent evidence has been brought on record to establish that any part of the expenses, brokerage and commission out of ₹ 4,44,342 were genuine - Decided against assessee.
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