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2021 (10) TMI 19 - ITAT VISAKHAPATNAMAddition u/s 69A - cash deposits made during the demonetization period in specified bank notes - HELD THAT:- In this case, there is no dispute that the assessee furnished the details before the Ld.CIT(A) and copy of the paper book was placed before us. As per the information placed in the paper book it is evident that the assessee has sold the shares of Legacy Mercantile Limited and received an amount on sale of shares and claimed the same as exempt u/s 10(38) of the Act. The assessee sold the shares through DEMAT account. CIT(A) verified the entire issue and decided the appeal. As per section 69A, where the assessee is found to be owner of any money, bullion, jewellery which is not recorded in the books of accounts, the same required to be brought to tax. In the instant case, the assessee had sold the shares and received the sale proceeds, thus, the source stands explained. What was claimed by the assessee was exemption u/s 10(38) which ought to have been disallowed by the AO. In the instant case, the assessee has recorded the transactions in the books of accounts as evident from the cash book and financial statements furnished by the assessee along with paper book. Therefore, there is no case for making addition u/s 69A and we do not find any reason to interfere with the order of the Ld.CIT(A) and the appeal of the revenue on this ground is dismissed. Addition on profit from sale of car - assessee reduced the said amount from P&L account, but not offered the same under the head Capital Gains - HELD THAT:- In the instant case, the assessee credited the profit on sale of car in Profit & Loss account, but the car is part of the block of assets and the sale consideration of the car required to be reduced from the block of assets. As per the computation given by the Ld.CIT(A) in appeal order, we find that the assessee has rightly reduced the sale of old car from the block of assets and claimed the depreciation on the written down value hence, there is no case for making the addition on sale of car. Therefore, we hold that the Ld.CIT(A) rightly deleted the addition and the same is upheld. Appeal of the revenue on this ground is dismissed Admission of additional evidence by CIT-A - department’s contention that the assessee has filed additional information in respect of long term capital gains and sale of old car, therefore, contended that the Ld.CIT(A) ought to have remitted the matter back to the file of the AO - HELD THAT:- As per the provisions of section 250(4 )of the Act, the Ld.CIT(A) is permitted to make further enquiries before disposing the appeal. The assessee has filed paper book and furnished the information that was placed before the CIT(A) or lower authorities.The information with regard to addition u/s 69A, sale of shares and depreciation on car are very simple issues and the department did not bring any defect or error in the information filed in the paper book. Since, the Ld.CIT(A) duly verified the information placed before him and for which he is permitted to cause enquiries, we find that ground raised by the department under Rule 46 is only for the sake of continuation of litigation and no fruitful purpose would be served. In the facts and circumstances, we do not see any valid reason to remit the matter back to the file of the AO. Therefore this ground of appeal of the department is dismissed.
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