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2013 (10) TMI 1086 - HC - Income TaxAddition u/s 69 of the Income Tax Act of Rs.42.50 lacs under the head 'undisclosed investments' in the purchase of land Held that:- Money was deposited by the company in the account of Mr. Nankau, who has withdrawn the same and purchased the land. Later, the land was re-sold to the assessee's company. In the hands of the assessee's company, the source of the advance was fully explained. In fact, the land was purchased by the assessee's company through Mr. Nankau. The A.O. made the addition merely on suspicion which is not desirable in the eye of law. The money used by the company through Mr. Nankau has been fully explained in the books of account. Nobody would like to convert the white money into black money - In the present case, there is no material available on record to show that the assessee company has paid money in cash to the original seller of the land - Addition of Rs.42.5 lacs was deleted Decided against the Revenue. Addition of Rs.10.00 lacs made by the Assessing Officer on account of unexplained loan Held that:- M/s. L.N.Seth, HUF of the Karta and one of the Director of the assessee Company, has received the money from his minor children who had received the gift from NRE account. If the addition will have to be made, the same will have to be made in the hands of M/s. L.N.Seth, HUF, and certainly, not in the hands of the assessee company who has received the amount through banking channel from M/s L.N.Seth HUF, in whose account there was sufficient funds available - In the instant case, money has come at all the level through banking channel and creditworthiness and identity of the donors/creditors have been proved - All the three conditions, namely, identity, creditworthiness; and banking transaction have been proved in the instant case Decided against the Revenue.
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