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2017 (12) TMI 526 - AT - Income TaxUnexplained cash credit on account of unexplained money u/s 69A - Held that:- We are of the view that certified copies of the sale deeds provided by the Additional District Sub-Registrar, Khanna are acceptable documents and since the said official had obtained photo identities of the parties (buyer and seller of land), hence, there remains no doubt about the existence of the buyers and sellers. We also note that cash deposit in the bank to the extent of ₹ 4,25,000/- is claimed to be the amount received from the cultivation of the land during 2005-2008, prior to its sale. The AO did not bring any cogent evidence to disprove the same. We note that AO had raised a controversy about the receipt of the money from the assessee by his father. The assessee’s father has categorically stated in his affidavit that he has received the amount. In respect of non-filing of return by the assessee’s father for the A.Y 2009-10, we are of the view that this cannot result in any taxation in the assessee’s hand because sale was agricultural land and does not attract capital gain tax. Therefore, based on the factual position, the addition of ₹ 54,20,000/- made by the AO has been rightly deleted by CIT(A). Hence, we do not find any infirmity in the order passed by the ld. CIT(A) and therefore, we confirm the order passed by the ld. CIT(A). Regarding the addition of ₹ 14,00,000/-, we are of the view that assessee during the assessment proceedings had provided to the AO a copy of the sale bill in respect of the household articles of his father. The AO did not bring on record and cogent evidence to prove that sale bills of household articles are bogus. Based on the factual position, we are of the view that order passed by the CIT(A) does not contain any infirmity. Therefore, we confirm the order passed by the ld. CIT(A). - Decided against revenue Addition under the head of unexplained expenditure - Held that:- AO during the assessment proceedings made his own estimate of what the assessee would have spent but we observe that the assessee had been supported by his son and his father was getting tax free pension which was sufficient to meet the family expenses. Therefore, considering the factual position, we are of the view that the order passed by the CIT(A) does not contain any infirmity. Therefore, we confirm the order passed by the CIT(A). Addition under the head concealed income earned from security charges - Held that:- If the security service charges of ₹ 1,62,536/- shown in the profit and loss account were increased by ₹ 71,937/-, the payment made to security personnel shown as expenditure in the profit and loss account would also have to be increased by the like amount. The AO, however, treated the sum of ₹ 71,937/- as concealed income ignoring the explanation that the amount paid to security personnel had to be increased by the like amount and consequential there would be no effect on the income. We note from the remand report that the AO has not controvert the fact that payment of ₹ 71,937/- to security personnel was debited to the security service charges received account resulting in netting off of the receipts to that extent. Therefore, the assessee’s explanation that if the security charges received were to be increased by ₹ 71,937/- to ₹ 2,34,473/-, the payment made to security personnel of ₹ 65,364/- was also required to be correspondingly increased by ₹ 71,937/- with no effect on the taxable income is quite acceptable and therefore, we confirm the order passed by CIT(A).
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