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2020 (6) TMI 41 - AT - Income TaxUnexplained cash credit u/s 68 - summon u/s 131 was issued to ten creditors but all returned un-served - only three Suppliers could produce by the assessee and one appeared in response to summon u/s.131 - HELD THAT:- The appellant had actually received these goods in its premises. The assessee is duly maintaining proper quantitative details to record purchase as well as sales made out of such purchases. If is further submitted that since these farmers do not maintain any proper books of accounts probably that is why some anomalies were pointed out by the Ld. AO while recording their deposition. It is further submitted that the Ld. AO has verified the books of accounts of the appellant and did not find any discrepancy in relation to sale of purchased goods to all the parties. The assessee had made total sales which has been credited in the profit and loss account. The entire sales has been accepted by the AO. We note that only the profit embedded in such transaction can be brought to tax. Therefore,ld CIT(A) has rightly rejected books of accounts of the assessee and made estimate 1% of net profit taking into account past net profit history of the assessee. Addition as income from other sources - Stamp value in excess of consideration price - gift of flat to a grandson - Addition made against the clubbing of income u/s 56(2)(vii)(b) read with Section 64(1A) of the Act - HELD THAT:- We note that the gift of flat to a grandson (Umang Dugar) does not come within the clutches of sec. 56(2)(viib) since grandfather and grandson are relative, (being lineal descendant ascendant) as clearly defined in the particular section itself. Therefore, there is no infirmity in the order of the ld. CIT(A). That being so, we decline to interfere in the order passed by the ld. CIT(A), his order on this issue, is hereby upheld and the grounds of appeal raised by the Revenue is dismissed.
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