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2016 (3) TMI 1063 - AT - Income TaxAddition u/s 50C - assessee submitted that the plots were held by the assessee as stock-in-trade of the business - Held that:- We have perused the provisions of section 50C(1). It is very clear from the section itself that the provisions of section 50C(1) is attracted only in a case of a capital asset and not in the case where the asset is held as stock-in-trade. From the facts in the present case, and the paper book filed, it is very clear that all the properties sold by the assessee during the relevant year under consideration formed part of stock. Therefore, we are of the considered opinion that the provisions of section 50C are not applicable to the present facts of the case - Decided in favour of assessee Disallowance being excessive interest paid on unsecured loans to related parties above the presumptive rate of 12% - Held that:- It is not the case of the Revenue that the assessee has not paid the interest at the said rate to the lender. It is also not the case that the borrowed funds have not been utilized by the assessee for the purposes of business. If a wrong or unwise decision has been taken by the assessee, it cannot be said that the decision is dubious or the assessee in such transaction has adopted method to evade the payment of tax. It is also not the case of the Revenue that the assessee has paid any dividend from such borrowed funds. In the instant case, there is no such evidence that has been brought on record by the ld. AO of any such method or practice adopted by the assessee. We are, therefore, inclined to allow this ground of appeal in favour of assessee. Ad hoc disallowance at 20% of travelling expenses - Held that:- . In the present case it is noticed that neither the Assessing Officer nor the ld. CIT(A) has given any cogent reason while confirming/sustaining the disallowance out of travelling expenses. On the contrary the assessee paid the fringe benefit tax and incurring of expenses is not in dispute.- Decided in favour of assessee
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