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2017 (6) TMI 233 - AT - Income TaxAddition of short term capital gain - transfer of development rights - Held that:- The amount of adjustment made by the AO as short term capital gains is merely on the basis of the ledger account provided by M/s. V.K. Developers. The Appellant has no corroborated the same with the facts of the case or the agreements governing this transaction. Being a development project, all the receipts and payments are duly recorded through agreements only. In the instant case, the land FSI cost is not covered by any agreement. Also the amount is outstanding for more than 3 years now. Accordingly, CIT-A correctly directed the AO to delete the additions in the absence of any substantive evidences - Decided in favour of assessee TDS u/s 194C - invoking the provisions of section 40a(ia) - non deduction of tds - Held that:- We find that the assessee before CIT(A) for the first time taken plea that the assessee is not covered under the tax audit under section 44AB of the Act in earlier years and accordingly, it is not required to comply that the provision of section 194J of the Act. We find that this is a fact that the assessee is not liable to TDS but this needs verification at the level of the AO. Hence, we remit the issue back to the file of the AO for verification purpose only. Accordingly, this issue of Revenue’s appeal is set aside and allowed for statistical purposes. Addition of indirect expense - Held that:- We find that the AO has disallowed on the basis that the assessee could not produce the bills and vouchers or like other evidences. The assessee before us could not produce the evidences of expenses; hence, we feel that 10% of disallowance will meet the end of justice. Accordingly, we direct the AO to disallow 10% of the expense. This issue of Revenue’s appeal is partly allowed.
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