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2019 (7) TMI 1274 - AT - Income TaxDeduction u/s 54F - proof of construction of a new asset - admission of additional evidence - construction of the new asset was made on plot which is in the name of the assessee wife - HELD THAT:- As perused the materials available on record and gone through the orders of the authorities below. We find that the evidences furnished are electricity bills, property tax receipts, inaugural photograph of house and the affidavit from the assessee. Considering the totality of the facts, these evidence goes to the root of the issue, and are material evidence to prove the construction of a new asset. We therefore, admit the same and set aside the orders of the authorities below on this issue and remit the issue of allowability of deduction u/s 54F to the A.O. The A.O. would decide the issue after considering the evidences placed on record in accordance with law. This ground of the assessee’s appeal is allowed for statistical purposes. Addition made towards enhancement of business income - HELD THAT:- The law is well settled where the A.O. makes best judgement by estimating the profit. He is required to make independent enquiries, if he is not satisfied with the profit declared by the assessee from the similarly situated assessee. In the present case, the sales as declared by the assessee were of ₹ 7,29,700/- A.O. has made addition purely on the basis that gross receipts are not declared. However, the assessee has declared the gross profit. We find that the Ld. CIT(A) in his order has stated a figure of ₹ 7,29,700/- as the sale proceeds which could be taken as gross receipts. Therefore, the very foundation of making estimation is not correct. Hence, we cannot confirm this adhoc and casual approach of the assessing authority, he is therefore hereby directed to delete the addition. This ground of the assessee’s appeal is allowed.
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