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2021 (1) TMI 120 - AT - Income TaxClaim of expenditure u/s 37(1) - Cancellation of sale agreement - assessee has claimed an expenditure as advance made for purchase of property forfeited - AO treated the same as capital asset transaction u/s 2(14) - Advance paid for the purchase of property was forfeited and claimed as deduction in the profit and loss account - assessee never intended to hold the property but due to adverse market conditions and financial difficulties has to cancel the agreement - HELD THAT:- From facts which are narrated before the Tribunal and sequence of events as referred by the assessee do not find a place in the assessment order and there is no clarity with respect to details. CIT (Appeals) has also observed that no evidence was filed before the lower authorities in respect of serious efforts made by the assessee. We on perusal of the legal notices and facts narrated by the assessee are of the opinion that these facts are not discussed by the Assessing Officer or the CIT (Appeals) and the assessee firm could substantiate serious efforts made for recovery of advance amount. We considering the principle of natural justice, shall provide one more opportunity to the assessee to substantiate with the evidence before the Assessing Officer. Assessee's appeal is allowed for statistical purposes.
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