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2021 (4) TMI 899 - AT - Income TaxAddition on protective basis u/s. 69A - CIT(A) has deleted addition made on protective basis holding that addition on substantive basis has been carried out in the case of Shri Mehul Mehta on the basis of order of Settlement Commission therefore action of the Assessing Officer to make addition on protective basis in the case of the assessee was treated as unjustified - HELD THAT:- As explained that amount was returned by the broker through whom the transaction was undertaken. In this regard, a copy of affidavit of Satyam Amitbhai Padihar, broker in the land dealing was furnished during the course of assessment proceedings. It is further noticed that the impugned land was ultimately sold on 19th August, 2016 to other parties. CIT(A) has also stated that considering the nature of transaction only substantive addition can be made in the hands of the buyer and in the hands of the seller on the reasoning that if payment was made by the buyer not out of disclosed sources the amount has to be added as undisclosed income to the total income of the buyer on substantive basis and at the same time if the receipt of consideration is not disclosed by the seller, the amount has to be added as undisclosed income to the total income of the seller on the substantive basis only. As undisputed fact that Shri Mehul Mehta in whose hands the addition was made on substantive basis had made relevant disclosure in the application for settlement which has been considered by the settlement commission in the order dated 17th Nov, 2017 u/s. 245D(iv) as elaborated in the finding of ld. CIT(A). In view of the above fact and circumstances, we do not find any infirmity in the decision of ld. CIT(A) in deleting the similar addition made in the hands of the assessee on protective basis. Therefore, this ground of appeal of the revenue stands dismissed. Addition u/s 68 - assessee has received unsecured loan - AO held that assessee has failed to establish the identity and creditworthiness of the lender and genuineness of the transaction - CIT-A deleted the addition - HELD THAT:- During the course of appellate proceedings before ld. CIT(A) the assessee has filed additional evidences which were admitted by the ld. CIT(A) and remand report was also called from the Assessing Officer. The Assessee explained that confirmation of the lender could not be obtained as he was not available at that relevant point of time. However after abled to contact the lender the necessary detail in support of the transaction i.e. copy of 7/12 of agricultural land owned by the lender, copy of bank statement of the lender and confirmation of the lender were obtained. Accordingly, the assessee furnished additional evidences which were in the nature of bank statement, confirmation containing his detailed address, documentary evidences of the ownership of agricultural land and it was also explained that since lender was an agriculturist therefore he was not liable to file any return of income. The loan was received from normal banking channel as evident from the bank statement there was no cash deposited in the account of the assessee prior to giving of the loan. The Assessing Officer has not brought any material or evidences on record to disprove the aforesaid facts and evidences submitted by the assessee in support of genuineness of the loan transactions. - Decided against revenue.
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