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2016 (6) TMI 735 - AT - Income TaxDeemed dividend addition u/s 2(22)(e) - Assessment made by the Assessing Officer U/s 153A - Held that:- Assessment U/s 153A read with Section 143(3), the ld Assessing Officer has to assess the income in abated year only where incriminating documents were found and seized and no regular addition can be made under this section as the Coordinate Bench has decided this identical issue in the case of M/s Jadau Jewellers and Manufacturers P. Ltd. (2015 (12) TMI 1526 - ITAT JAIPUR ) wherein it has been held that technical ground raised by the assessee succeeds and order passed U/s 153A read with Section 143(3) of the Act has been held void ab-initio. The other case laws referred by the assessee is also squarely applicable. Therefore, we have considered view that assessment made by the Assessing Officer U/s 153A read with Section 143(3) of the Act is out of jurisdiction. Accordingly, we allow the assessee’s appeal on this ground. In real estate most of the transactions are being made on the basis of agreement to sale and to avoid the stamp duty payment. In real estate business number of transactions of purchase and sale of the plots are being made and stamp duty finally is to be borne by the actual user of the plot at the time of registration. Therefore, generally the transactions made on agreement to sale basis. It is also a fact that this transaction was in between director of the company and company even as per this agreement, the assessee has to make registry of both the plots at the time of final conversion and allotment of Patta. The correspondence between the assessee and the JDA shows that there was efforts to convert the land commercially and get the patta from the JDA, which cannot be doubted. The assessee relied on various decisions on deemed dividend wherein it has been held that loan advances given against the consideration are business transactions not deemed dividend U/s 2(22)(e) of the Act. Therefore, we held that the transaction made between the assessee and the company are business transactions and is not covered U/s 2(22)(e) of the Act. Accordingly, we reverse the order of the ld CIT(A) - Decided in favour of assessee
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