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2016 (3) TMI 451 - ITAT LUCKNOWApplicability of provisions of section 56(1)(vii)(b) - income from other sources - market value of the property for stamp duty purpose is higher than the consideration paid by the assessee - undisclosed investment - Held that:- Property at Bhilawan, Lucknow has been shown at ₹ 3 lac + stamp duty ₹ 1,74,500/- and legal fees ₹ 10,000/-, total ₹ 4,84,500/- and we do not know from where the CIT(A) has noted the actual sale consideration of ₹ 43,55,200/- in his chart on page No. 23 of his order. Regarding a property at Habibullah Estate, Hazaratganj, Lucknow said to have been acquired by the assessee on 19/10/2006, the value appearing in the above chart is ₹ 20.50 lac + stamp duty ₹ 12,68,500/- + legal fees ₹ 10,000/- and cost of construction ₹ 1 lac, total ₹ 44,28,500/- but CIT(A) has stated in the chart on page No. 23 of his order that market value of this property is ₹ 1,26,84,600/-. It may be that market value of the property for stamp duty purpose is higher than the consideration paid by the assessee but section 50C is not applicable in respect of acquisition of property and amendment in section 56(1) has been made by the Finance Act, 2015 with effect from 01/04/2014 as per which, if any immovable property is purchased for a consideration which is less than the stamp duty value of the property by an amount exceeding ₹ 50,000/-, addition should be made as income in respect of stamp duty value of such property in excess of the stated consideration. Hence, the provisions of section 56(1)(vii)(b) are not applicable in the present year because the same are applicable from assessment year 2014-15. In the similar manner, for the remaining properties also, the basis of CIT(A) is that market value for stamp duty purposes is higher than the value of consideration paid by the assessee as per purchase deed but such an addition in the present year is not sustainable in the eyes of law unless evidence is brought on record to show that extra price was paid by the assessee to acquire the property in question. In the present case, no such evidence has been brought on record by the A.O. to show that extra price was paid by the assessee to acquire the property in question. Hence, we delete this addition. - Decided in favour of assessee Disallowance of agricultural income - treating the same to be from undisclosed source - Held that:- an amount of ₹ 20,000/- per bigha per anumn can be considered as agricultural income and on this bass, out of total amount received from these two persons of ₹ 12.24 Lacs, an amount of ₹ 6.00 Lacs should be considered agricultural income. The balance land is about 40 Bighas because one hectare is equal to about 6.2 Bighas. Hence total 11.737 Hectares of land is about 70 Bighas. After excluding 30 Bighas from it, the balance land is about 40 Bighas. From this balance land, income of ₹ 8.00 Lacs should be considered as agricultural income on the same basis of ₹ 20,000/- per Bigha per anumn. In this manner, total agricultural income of ₹ 14.00 lacs out of the claim of ₹ 35.25 Lacs deserves to be accepted. - Decided partly in favour of assessee Addition on unsecured loan from Shri C. P. Goel - Held that:- In remand proceedings, summon u/s 131 issued by the A.O. was served on Shri C. P. Goel and reply was filed by him directly to the A.O. in which he has confirmed that this amount of loan was given by him to the assessee. This also establishes his identity. He also requested the A.O. to depute some body for recording his Statement at his residence but the A.O. did not do so but under these facts, his identity cannot be doubted. Regarding his creditworthiness, this fact that he was enjoying overdraft of ₹ 40,85,584.29 on 26.03.2007 as per Bank Statement of Shri C. P. Goel from Bank of India, Indira Nagar Branch, in our considered opinion, his credit worthiness for advancing loan of ₹ 39.50 Lacs to the assessee also deserves to be accepted. Regarding non providing of detail of Cheque Nos. etc., it is worth noting that it is stated by Shri C.P. Goel in his letter dated 18.09.2014 that he is suffering from Glaucoma and Hernia and was advised complete bed rest. Medical certificate is also enclosed with this letter and therefore only because details of Cheque Nos. etc. could not be provided by him because of his bad health position, no adverse inference can be drawn. Therefore, under these facts, it has to be accepted that the assessee has been able to establish the identity of the lender and his creditworthiness as well as genuineness of the transaction and therefore the addition u/s 68 is not justified.- Decided in favour of assessee Addition as Sundry Creditors for expenses - Held that:- In Para 6.6, the CIT(A) has noted down three outstanding amounts of ₹ 1,37,217/- from Vijaya Bank, ₹ 86,500/- from HDFC Bank and ₹ 96,954/- from Standard Chartered Bank. The relevant bank statements are available in paper book to which our attention was drawn and therefore, these three credit amounts has to be accepted as explained. Regarding the balance amount of ₹ 2.10 lac, it is noted by CIT(A) that this amount was stated to be not traceable. Hence, we confirm this amount of ₹ 2.10 lac and delete the balance amount of ₹ 3,20,715/-.- Decided partly in favour of assessee
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