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2018 (3) TMI 1350 - AT - Income TaxAdditions u/s 68 - genuineness of creditors - advance against sale of land - validity of Agreement to Sell was executed on 12th March, 2010 between the parties - A.O. made investigation from Stamp Vendor etc. The A.O. recorded the statement of Stamp Vendor etc., and made further enquiry into the matter and noted that stamp paper was issued by the Delhi Treasury on 22nd March, 2012 i.e., 02 years after the date of execution. Valuation of property was found at lessor amount. - Held that:- The A.O. did not doubt existence of creditor and its creditworthiness. Thus, A.O. accepted identity of creditor and its creditworthiness and genuineness of the transaction. For proving case under section 68, assessee is required to prove identity of creditor, its creditworthiness and genuineness of the transaction, which assessee has proved in this case. The valuation of property may not be relevant to discard the explanation of assessee particularly when amount is returned in subsequent year. There was no justification to make the addition under section 68 of the I.T. Act. - According to Section 68 of the I.T. Act, assessee has to prove only the source of the credit. In this case, it is not an ordinary credit, but, assessee has received advance against sale of the property. Therefore, the explanation of assessee should not have been doubted by the A.O - No additions - Decided against the revenue.
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