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2015 (4) TMI 1272 - AT - Income TaxDeemed dividend u/s 2(22) (e) - HELD THAT:- CIT(Appeals), on going through the Agreement to Sell in question specifically found that part of the amount is stated as advance and that assessee is 1/3rd owner of the property in question. However, in the Agreement to Sell, assessee claimed to be owner of the property in question. In the Agreement to Sell, it is stated that assessee shall receive the balance amount at the time of execution and registration of the Sale Deed. However, till date, no Sale Deed is executed by assessee in favour of the assessee. Therefore, there is no question of making further payment to the assessee as advanced against the property in question. The other co-owner have never entered into any Agreement to Sell with the company. There was a difference in the property number also as noted by the CIT(Appeals). CIT(Appeals) was justified in holding that assessee's contention is after-thought and the entire transaction relate to sham transaction. The factual discrepancies have not been explained during the course of arguments before us as well. CIT(Appeals) was, therefore, justified in deciding the issue against the assessee. No merit in the appeal of the assessee on these grounds. Ground Nos. 2 and 3 of the appeal of the assessee are dismissed. Addition of mobile expenses, car depreciation for personal purposes - AO without pointing out as to which of the expenses were used for personal purposes, made disallowance of 1/5th of the expenditure on this issue - HELD THAT:- CIT(Appeals) confirmed the addition and dismissed this ground of appeal of the assessee. Assessee submitted that it is adhoc addition without pointing out any defect in the books of account of the assessee and in the alternate contention, submitted that addition is excessive in nature. Considering the explanation of the assessee and findings of the authorities below, we are of the view it is adhoc addition in nature. However, considering assessee's status to be individual, personal use of these facilities i.e. mobile charges and car depreciation could be used for personal purposes, we modify the orders of authorities below and direct that 1/10th disallowance may be made out of this addition. In the result, this ground is partly allowed.
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