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2016 (2) TMI 340 - AT - Income TaxUnexplained credits introduced in the garb of unsecured loans - Accommodation entries - Held that:- CIT(A) has rightly held that when the assessee had provided the AO with the latest address of the squared up cash creditor (as the assessee had no such control on them therefore they were unable to produce before the AO and no further enquiries have been done of any kind by the AO) Ld. CIT(A) found that even the basic step i.e. summons or query letter were not issued, to these cash creditor and not an iota of evidence has been collected and brought on record which indicates or prove that the cash credit money was assessee's own money, in such an event, he rightly held that AO is not correct in holding the ₹ 95,00,000 received from 3 corporate entities mentioned above are bogus, sham and they are engaged in providing accommodation entry. - Decided against revenue Addition on on account of earnest money - Held that:- CIT(A) has rightly held that AO was not justified in making addition on account of earnest Money, particularly when the property which was reflected as part of the inventory as on 31.03.2009 and the same is sold in the subsequent year and profit on the same has duly been reflected in and profit and loss account for assessment year 2010-11. Hence the addition made on account of earnest money was rightly deleted. - Decided against revenue Unaccounted cash deposited in bank - Held that:- As during the year the assessee sold 2 of properties, namely Property no. 11, N.K. II Indirapuram (Rs. 75,00,000) and property no. 392, Shakti Khand-III, Indirapuram (Rs.9,50,000). We find that both the property sale are duly been reflected in assessment year 2009-10. The assessee had received the sale consideration of ₹ 9,50,000 in cash and the same was shown as a source of cash being deposited in the bank account. The AO had accepted the sales of ₹ 84,50,000 declared by the assessee, in these circumstances the action of the Ld. CIT(A) in deleting the addition of ₹ 9,50,000 on account of cash deposited in the bank account was a rightful one. - Decided against revenue Addition u/s. 50C(1) - Held that:- As it is an established fact that the assessee is engaged in the real estate business, therefore, the immovable properties are appearing in assessee's books of account as stock-in-trade. Further from the perusal of Circular No. 8 of 2002 which relates to the provisions of Section 50C, it was seen that the provisions of Section 50C are only applicable to those assets which are capital assets and on which capital gain is to be computed. In view of above, in our considered opinion, Ld. CIT(A) has rightly held that since the immovable properties are treated as stock-in-trade accordingly, the provisions of section 50C(1) are not applicable, and the addition made by the AO was rightly deleted by the Ld. CIT(A). Therefore, we find no infirmity in the impugned order passed by the Ld. CIT(A) - Decided against revenue
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