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2017 (11) TMI 1866 - AT - Income TaxRectification of mistake - violation of provisions of section 40A(3) of the Act - in the opinion of revenue, the Hon'ble Tribunal had followed the judgment of Hon'ble Punjab & Haryana High Court in the case of GURDAS GARG VERSUS THE COMMISSIONER OF INCOME TAX (APPEALS) , BATHINDA AND ANOTHER [2015 (8) TMI 569 - PUNJAB & HARYANA HIGH COURT] for allowing relief to the assessee for violation of provisions of section 40A(3) of the Act - the revenue without prejudice to the earlier ground for recalling the order has stated that the findings of the Assessing Officer in the assessment order has not been rightly appreciated and therefore there was a mistake in the order of the Tribunal which needs rectification. HELD THAT:- The detailed findings has been recorded by Hon'ble Tribunal in para 12 wherein it has held that no cash payments were made and the addition was based only on presumptions and surmises. It has further held that payments were made by buyers directly in the present of Sub-Registrar as has been mentioned in the deeds and therefore in view of these circumstances, the Hon'ble Tribunal had rightly held that question of disallowance u/s 40A(3) does not arise. In para 13, the Hon'ble Tribunal has held that even if it is assumed that assessee must have purchased the land and had made payments in cash even then the disallowance cannot be made in view of the judgment of Hon'ble Punjab & Haryana High Court in the case of Sh. Gurdas Garg. From the combined reading of the order of the Tribunal from para 12 and 13 it is observed that Hon'ble Tribunal has primarily deleted the addition by holding that the addition was made only on presumptions as no cash payments were made. The Miscellaneous Application filed by Revenue is dismissed.
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