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2017 (9) TMI 817 - AT - Income TaxAddition on estimated business income - estimation of higher income - CIT-A deleted addition - Held that:- No interference is called for in the matter. The A.O. has not given any reason for estimating the higher income of assessee. The findings of the A.O. are not corroborated by any evidence or material on record. Therefore, on mere estimation, enhancement of income, is without any basis. Accordingly, the Ld. CIT(A) correctly deleted the addition - Decided against revenue Unexplained cash deposit in bank - proof of creditworthiness of Shri Devender Sharma from whom advance has been shown - Held that:- The assessee filed copy of the sale agreement dated 20.04.2011 (PB-49) between assessee and Shri Devender Sharma through which ₹ 10 lakhs was received by assessee in cash as advance against sale of the property. PB-52 is the copy of the bank account of the purchaser Shri Devender Sharma which shows that on 13th April, 2011, he has withdrawn cash of ₹ 12 lakhs from his bank account. Thus, the assessee has been able to prove that he received advance against sale of property and thus, proved the identity of the purchaser and his creditworthiness because he has withdrawn the amount in cash from his bank prior to entering into an agreement to sale with the assessee. - Decided against revenue Addtion u/s 68 - proof of creditworthiness of Shri Sanjay Tyagi for giving loan of ₹ 18 lakhs to the assessee through banking channel - Held that:- The assessee filed copy of the confirmation of the creditor in the paper book at page-32 in which it is confirmed by Shri Sanjay Tyagi for giving loan of ₹ 18 lakhs to the assessee through banking channel, which is supported by the copy of the bank statement. The assessee also filed copy of the bank account of Smt. Javitri Devi to show that she has given ₹ 1 crore to Shri Sanjay Tyagi. Therefore, the assessee proved all the ingredients of Section 68 of the I.T. Act in the matter. Ld. CIT(A) noted that this addition is made by the A.O. without giving opportunity to the assessee. This finding of fact has not been disputed through any evidence or material on record. When A.O. made this addition without giving opportunity to the assessee to explain credit of ₹ 18 lakhs, this itself is sufficient to delete the addition against the assessee because it violates principles of natural justice - Decided against revenue Addition on account of interest on loan - Held that:- No merit in this ground of appeal of the Revenue. PB-25 is Agreement of Sale in favour of assessee and others through which had given the above advance money to the seller. Therefore, A.O. without any justification disallowed the interest.- Decided against revenue Unexplained investment - Held that:- No merit in this ground of appeal of the Revenue. The assessee filed copy of the bank statement to show the withdrawals from his bank account prior to the sale deed. Copy of the sale deed is also filed which support the fact that assessee made investment in property out of his own source. Thus, the assessee explained the source of investment in property.- Decided against revenue
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