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2015 (7) TMI 866 - AT - Income TaxAddition under the head “Income from Other Sources” - amount does not represent the sale consideration of the property sold and consequently, the exemption u/s. 54F of the Act was also denied by AO - Held that:- There is nothing on record to suggest that the appellant was having any other source of income or the appellant is capable of earning that much of money. Having regard to her state of health, age and qualification etc., it is highly improbable that appellant could have earned so much of income from undisclosed sources. The preponderance of probability is more in favour of explanation of the appellant. The Assessing Officer also failed to contradict the explanation furnished by the appellant with some positive evidence and, therefore, it can safely be said that the explanation furnished by the appellant cannot be doubted. Moreover, this kind of addition can be made by the Assessing Officer by using his discretionary power under the provisions of Sec. 69 of the Act and the Assessing Officer is not obliged under law to make addition in every case where the explanation offered by the assessee is found to be not satisfactory. This ratio was laid down by the Hon’ble Supreme Court in the case of [CIT vs. P.K.Noorjahan - 1997 (1) TMI 6 - SUPREME Court] which is squarely applicable to the facts of the present case. Therefore, we hold that the Assessing Officer is not justified in holding that the sum of ₹ 3,00,00,000/- is not attributable to sale of property and making addition of the same. Thus, we accordingly direct the Assessing Officer to delete the addition of ₹ 3,00,00,000/-. As held in the para supra that the money of ₹ 3,00,00,000/- was receive as a part of sale consideration of the house property sold, the same is, therefore, eligible for consequential relief u/s.54 of the Act to the extent of the actual investment made in the new house. - Decided in favour of assessee.
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