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2016 (1) TMI 360 - AT - Income TaxAddition towards undisclosed sale of two flats - Held that:- There is no case for making any addition towards undisclosed sale of two flats and profits derived thereon on an estimated basis as the contention of the assessee with regard to the gifts given by him to the widow of his younger brother has been accepted as genuine by the Learned AO in Asst Year 2005-06. Hence we find no infirmity in the order of the Learned CITA in this regard. - Decided in favour of assessee Addition made on an estimated basis for sale of car parking spaces - Held that:- There is no case for making any addition towards undisclosed sale of two car parking spaces and profits derived thereon on an estimated basis. - Decided in favour of assessee Addition towards advance received on sale of flat - Held that:- As find from the statement of the Learned AR that the said sum is offered to tax by the assessee in Asst Year 2009-10. Hence we direct the Learned AO to delete the same in Asst Year 2009-10 in order to avoid double taxation of the same amount - Decided in favour of assessee Addition on account of labour charges - non deduction of tds - Held that:- TDS provisions are applicable to the assessee for Asst Year 2006-07 and hence section 40(a)(ia) of the Act has been rightly invoked on the assessee for Asst Year 2006-07. However, we find that the second proviso to section 40(a)(ia) of the Act which is introduced in the statute with effect from 1.4.2013 has been held to be retrospective in operation by the recent decision of Hon’ble Delhi High Court in the case of CIT vs Ansal Land Mark Township P Ltd reported (2015 (9) TMI 79 - DELHI HIGH COURT). Accordingly, we deem it fit and appropriate , in the interest of justice and fair play, to set aside this issue to the file of the Learned AO to examine the issue in the light of the decision rendered by the Hon’ble Delhi High Court as stated supra and decide the issue in accordance with law. The assessee is also directed to provide necessary evidences and documents to prove that the payee had duly disclosed the subject mentioned receipt of labour charges in their respective returns and paid the due taxes thereon. - Decided in favour of revenue for statistical purposes. Addition being the difference between the deposits and withdrawals - Held that:- We find that the entire books of accounts have been produced by the assessee before the Learned AO which fact is also mentioned in the assessment order. It is not the case of the assessing officer that the transactions in the said two bank accounts were not reflected in the books of accounts of the assessee as the Learned AO himself states that the total deposits includes a sum of ₹ 10 lacs received by assessee from Sri K.S.Panja towards advance for flat. We also find that the assessee had carried on his business transactions with the said two bank accounts and accounts have been duly audited u/s 44AB of the Act by an independent chartered accountant and books of accounts were not rejected by the Learned AO. Hence there is no case for making any independent addition in this regard.- Decided in favour of assessee Addition towards interest on bank loan - Held that:- We find from the balance sheet of the assesssee, the break up of loans and advances (asset) as reflected in the balance sheet is not available on records. We also find that assessee is also having some own funds which would definitely explain the interest free advances given by him to various parties. Hence in the facts and circumstances of the case, we deem it fit and appropriate, in the interest of justice and fair play, to set aside this issue to the file of the Learned AO to the limited extent of ascertaining whether the advances given to Sri Amal Chakraborty and M/s Akash Associates were for the purpose of business. We make it very clear that if the advances made to these two parties are less than the own funds available with the assessee, then no disallowance of interest should be made.- Decided in favour of revenue for statistical purposes. Addition on account of various expenditures - Held that:- The assessee had reported transportation income in his return and hence the aforesaid expenditures are allowable even against that income - Decided in favour of assessee
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