TMI Blog2014 (5) TMI 271X X X X Extracts X X X X X X X X Extracts X X X X ..... meaning of S.269SS of the Act - the advances received by the assessee for purchase of assets cannot be held as loan or deposit as prescribed in Section 269SS - AO has recorded the statement of lenders who had confirmed on oath before the AO and also filed the affidavits that they had advanced money to the appellant against purchase of assets – Decided against Revenue. - ITA No. 1675/Ahd/2010 - - - Dated:- 29-4-2014 - Shri G. C. Gupta And Shri T. R. Meena,JJ. For the Appellant : Shri O. P. Meena, Sr. D.R. For the Respondent : Shri Ankit Talsania, A.R. ORDER Per : Shri T. R. Meena, Accountant Member This appeal is filed by the Revenue against the order of the CIT(A), Valsad, order dated 05.01.2010 for A.Y. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eived by her for purchase of assets on behalf of these parties or creditors, the same cannot be treated as loan or deposit within the meaning of Sec.269SS. The contention of the appellant sounds to be correct as the same has been verified from the statement on oath recorded by the AO in which the parties confirmed that they have advanced respective amounts to the appellant against purchase of asset. I have also considered the ratio laid down in the cases upon which the AR has relied and those upon which the AO has placed his reliance. On carefully going through the facts of the case and ratio laid down in these legal precedents, I find force in the contentions of the appellant and especially on the legal pronouncements i.e. CIT us. Noid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 000/- u/s 271D of the Act. 1. Pushpaben S. Bothara 2,10,000/- 2. Sandip S. Bothara 2,31,000/- 3. Shri Kalar @ Amit S. Jain 1,00,000/- 4. Shri Suresh Khalas 1,00,000/- Total 6,41,000/- The Id AO has failed to appreciate that the amount received was nothing but the Advances given by the respective person to buy assets and on behalf of them. The Id. AO has further failed to appreciate that even the respective persons have also confirmed in their affidavit inasmuch as in statement recorded by the AO that they had provided advances to the Appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TTJ 479 (Ahd.) (c) CIT vs. Sree Krishna Promoters Builders 16 taxman.com 138 (Kar.) (d) DCIT vs. Forging Ltd. 138 ITD 143 (Del) (e) CIT vs. Kharaiti Lal Co. 270 ITR 445 (P H) (f) DCIT vs. Sahara India Commercial Corp. Ltd. 147 ITD 176 (Del) He requested to confirm the order of the CIT(A). 5. We have heard the rival contentions and perused the material on record. The advances received by the assessee for purchase of assets cannot be held as loan or deposit as prescribed in Section 269SS. The ld. A.O. has recorded the statement of lenders who had confirmed on oath before the A.O. and also filed the affidavits that they had advanced money to the appellant against purchase of assets. The case laws relied upon by the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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