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2016 (7) TMI 730 - ITAT DELHIIncreasing sales consideration on account of dumb documents found - Held that:- Addition on similar allegation in the hands of the purchaser payer has been deleted by the ld. CIT(A) and the order of the ld. CIT(A) has also been upheld by the ITAT, Allahabad and there is no further appeal by the Revenue. Therefore, similar issue attained finality in favour of the purchaser Shri Pradeep Kumar Baranwal and thus the allegation has no legs to stand that there was over and above DD payment amounting to ₹ 49,56,108/- as concealed income of the assessee and the same deserves to be taxed u/s 28 of the Act. In view of the above, we decline to uphold the action of the AO and impugned order wherein the addition made by the AO has been upheld and thus we demolish the same as and when it has been adjudicated by the ld. CIT(A), Varanasi that no over and above cash payment was made by Shri Pradeep Kumar Baranwal towards purchase of shop No. 123 in the Mall constructed by the assessee Company, then similar addition in the hands of the seller payee cannot be held as sustainable. Consequently, addition made by the AO and upheld by the ld. CIT(A) is dismissed. - Decided in favour of assessee Addition under the head ‘other sources’ - whether there is no inextricable link between the FDs and the business of the assessee, therefore, the interest income earned from therefrom should be taxed under the head ‘income from other sources’? - Held that:- There were some fixed deposits by the assessee company with the bank and the assessee chose to utilise its FDs towards its obligations of keeping some margin money for bank guarantee. Therefore, we decline to accept allegation of the ld. CIT(A) that keeping some margin money for bank guarantee and having fixed deposits with the bank are two distinct and separate transactions. At the same time, we are satisfied that when the assessee chose to utilise its fixed deposits towards its obligation of keeping margin money towards it business obligation, then it has to be held that there is inextricable link between the fixed deposits and business obligation of keeping margin money. Hence the interest income has to be treated as business income and not income from other sources. - Decided in favour of assessee Income under the head business income - profitability calculation - Held that:- AO assessed income from business viz calculation of profitability on project completion basis at ₹ 1,37,10,343/- whereas while passing order for A.Y 2009-10 he reduced the amount of ₹ 87,51,902/- as profit already declared for the preceding A.Y 2008-09 which is not a proper and correct approach of the AO. In view of the above noted facts and circumstances, we are in agreement with the conclusion of the ld. CIT(A) which granted relief to the assessee and directed the AO to give effect accordingly. We are unable to see any ambiguity or perversity or any other valid reason to interfere with the order of the ld. CIT(A). - Decided against revenue
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