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2019 (9) TMI 1138 - AT - Income TaxDenial of exemption u/s.54F - procurement of new residential flats - assessee had paid sum to Builders and that money is still lying with the said developer as sworn in by the affidavit filed in record by the assessee and that once the project is completed, the assessee will go ahead and procure the new residential house by paying the balance amount - HELD THAT:- In the present case, we have already examined the bona-fide nature of the assessee and genuineness of the transactions for procurement of new residential flats and that genuineness remain uncontroverted. We further find even in the following decisions wherein it has been held that “if the amount has been utilized before the due date of filing of return, the exemption u/s.54F of the Act cannot be denied on the ground that the assessee has not taken the possession of the flat within the stipulated period Deemed dividend u/s.2(22)(e) - HELD THAT:- In the balance sheet of the company i.e. Kumar Urban Development Ltd, the amount is not shown as loan to the assessee. The words in Section 2(22)(e) of the Act clearly states “any advance or loan given to a person”. In this case, there is no loan or advance given from the company to the assessee. When no loan or advance has been given to the assessee, then Section 2(22)(e) of the Act is not triggered. We, therefore, set aside the order of the Ld. CIT(Appeals) and direct the Assessing Officer to delete the addition on account of deemed dividend u/s.2(22)(e) of the Act. The Assessing Officer is directed to provide appeal effect accordingly. Thus, ground No.3 raised in appeal by the assessee is allowed. Addition on the basis of ITS data - HELD THAT:- In view of the submissions made by the parties herein, we set aside the order of the CIT(Appeals) on this issue and restore the matter to the file of Assessing Officer for necessary verification and adjudication wherein the assessee is directed to file the reconciled details. AO is directed to adjudicate the issue after considering the reconciled details in compliance with the principles of natural justice. Thus, ground No.4 raised in appeal by the assessee is allowed for statistical purposes.
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