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2015 (3) TMI 394 - ITAT AHMEDABADApplication of deeming provision u/s 50C to the business income - Validity of Samjuti Karar - addition made in the hands of Assessee on account of 100% profit in document price of land sold deleted by CIT(A) - Assessee shown 25% only - Disallowance of the loss on sale of Land - Held that:- CIT(A) after perusing the various documents and the submissions of the Assessee and by detailed order has decided the issue in favour of the Assessee and interalia has also noted that the A.O has failed to substantiate the stand that the “Samjuti Karar” was a part of planning for evasion of tax. He also noted that the profit out of the sale of the land was duly reflected by the co-owners in the respective return of income and the same has been accepted by the Department. He has further noted that the land records were also upgraded to include the name of the co-owners and the “Samjuti Karar” was in the form of ratification of an early agreement which is permissible in law. Before us, Revenue has not brought any material on record to controvert the findings of ld. CIT(A), we therefore find no reason to interfere with the order of ld. CIT(A) and thus the ground of Revenue and the ground raised by Assessee in the C.O are dismissed. - Decided in favour of assessee. Interest expenses - CIT(A)deleted the disallowance - Held that:- We find that A.O while making the addition has noted that no details were furnished by the Assessee in support of his claim of interest for expenses. We find that before ld. CIT(A) Assessee had filed details on the basis of which the ld. CIT(A) has granted relief to the Assessee. Rule 46A of the I.T. Rules stipulate that CIT(A) for the reasons to be recorded, can admit the evidence produced by the Assessee in the appeal. However, the evidence produced by the Assessee under Rule 46(A)(1) cannot be considered on merits under Rule 46A(3) unless the A.O is given an opportunity to examine the evidence or document produced by the Assessee. In the present case, we find that on the additional evidence submitted by Assessee before CIT(A), the same were not confronted to the A.O nor any remand report was obtained from A.O. Therefore are of the view that in the interest of justice, the A.O should have been given an opportunity to examine the evidence that were furnished for the first time before CIT(A). We therefore set aside the issue to the file of ld. CIT(A) for him to decide the issue afresh after considering the submissions of the Assessee and in accordance with law. - Decided in favour of Revenue for statistical purposes. Disallowance on account of depreciation, interest expenses, salary expenses etc. - Held that:- while disallowing the claim, A.O has noted that there appear to be no business activity undertaken by the Assessee. We find that there is no finding of the A.O that the expenses that have been claimed by the Assessee are only with respect to his share of 6.25% of the profits which have been considered by ld. CIT(A). We are therefore of the view that the matter needs re-examination at the end of A.O. We therefore set aside the issue to the file of A.O to decide the issue afresh after giving an opportunity of hearing to the Assessee.- Decided in favour of Revenue for statistical purposes.
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