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2018 (11) TMI 1116 - ITAT MUMBAIAddition made in respect to difference between AIR details and the transactions disclosed in the income tax returns - AO treated 50% of the advances received by the assessee as income from other sources by invoking the provisions of Section 56(2)(vi) - AO also treated these advances received from buyers of the flats as business receipt by invoking the deemed provisions of Section 28(iv) - Held that:- We find that the assessee is promoter of the building ‘Harmony’ along with the other co-owner Shri Prithvijeet Rajaram Chavan and both as coowner has carried out this construction activity. We find from records that the assessee as well as Shri Prithvijeet Rajaram Chavan has offered the income from this project at ₹57,14,251/- in each case in respective returns of income for AY. 2011-12. We are of the view that the AO has not appreciated the AIR information which is merely carried out the details of receipts from the buyers. The property was sold in next year when the project got completed and both the joint co-owner has disclosed their respective income in their returns of income earned from this project. We have verified this fact as noted by the CIT(A) also that the income from this project has already been disclosed by assessee as well as Shri Prithvijeet Rajaram Chavan in their respective returns of income. We find no infirmity in the order of the CIT(A) in deleting the addition - decided against revenue
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