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2021 (3) TMI 1189 - AT - Income TaxUnexplained deposits in bank accounts - HELD THAT:- The addition was sustained by the ld. CIT(A) for the reason that compliance was not made during the original assessment proceedings and at remand stage. This cannot be a ground of making addition for the reasons that the Assessing Officer had made the addition on the ground that the deposits in bank accounts are not explained. Without a copy of the bank account, the Assessing Officer cannot come to a conclusion that the deposits made in a bank account are unexplained. All details including copies of bank accounts were furnished by the assessee. The evidence given by the assessee is not disputed by the revenue. The addition was confirmed in a summary manner, without reference to the facts. In view of the above discussion and finding of the Assessing Officer in the remand report extracted above, the addition in question, is hereby deleted. Disallowance of commission and development charges - HELD THAT:- When the land is converted into plots by laying roads, building drains, developing common areas etc., as per the norms of the Urban Development Authority, and when plots are sold only after such development expenditure is bound to be incurred. It cannot be said that dry land of 10.69 acres can be sub-divided into house plots after development and sold as house plots without incurring any expenditure. The evidence in the form of development agreement dt. 15/06/2003, and payments made through account payee cheques and the fact of the development of the land into plots is sufficient evidence to prove the incurring of expenditure. Except for disbelieving the claim of the assessee, there is no adverse material collected by the assessing authorities. Confirmation letters from Shivaji Estates & Constructions by Smt. Dantuluri Gita Kumari, wherein she had stated that the amount in question was offered to tax in her Income Tax Return and confirmation letters from one Mr. U. Prabhakar Rao, on the commission of ₹ 47,400/-, received/receivable by him, support of the contentions of the assessee. Thus, we uphold the contention of the assessee and allow the claim of the assessee of having been incurred development expenditure - Decided in favour of assessee.
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