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The Commissioner of Income Tax III, Ludhiana Versus M/s Marvel Home Constructions (P) Ltd.

Addition on account of unexplained unsecured loans - Held that:- We find no merit in the said ground of appeal raised by the revenue in view of the confirmations being filed by the assessee in respect of the balance three loan creditors i.e. S/Shri Deepak Mahindra, Dr. Murari Lal Aggarwal and Rajinder Mohan Singla. The assessee has also furnished on record the confirmation of the aforesaid parties. The addition was made by Assessing Officer for non furnishing of balance confirmation of loan cred .....

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g authorities. The seller of the property had reflected the sale price i.e.Rs. 2,15,90,000/- in their hands and the same was accepted while assessment order passed under section 143(3) of the Act. The assessee has furnished on record the information sought by the Assessing Officer in the case of the seller under section 133(6) of the Act which are placed at pages 20 to 22 of the paper book. The CIT(A) has observed that price of the land as mentioned in the sale deed and not the market price has .....

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e hands of the purchaser - Decided in favour of assessee

Addition on unexplained payment of stamp duty etc. for the purchase of land - Held that:- he assessee claims that the said stamp duty has been paid out of the cash available in its books of account. The learned DR for the revenue had not controverted the findings of the CIT(A). In the absence of any contrary findings, we are in conformity with the order of CIT(A) in deleting the addition of ₹ 24,10,000/-. The source of cre .....

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whom a sum of ₹ 90,000/- was received by cheque and the balance ₹ 40,000/- was deposited out of cash in hand available with the assessee and the photocopy of relevant pages of cash book was furnished on record. The CIT(A) deleted the addition of ₹ 1,30,000/-. We are in conformity with the order of CIT(A) in view of the explanation of the assessee wherein a sum of ₹ 90,000/- has been received vide cheque from Shri Gulshan Arora, who in turn has confirmed the same. The bal .....

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ated 30.8.2010, Annexure-3 passed by the income Tax Appellate Tribunal, Chandigarh Bench 'B' Chandigarh in ITA No.29/CHD/2010, for the assessment year 2006-07, claiming following substantial questions of law:- i) Whether on the facts and in the circumstances of the case, the Hon'ble ITAT is right in upholding the order of CIT(A) in deleting the addition of ₹ 38,50,000/- made by the Assessing Officer on account of unexplained unsecured loans? ii) Whether on the facts and in the .....

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'ble ITAT is right in upholding the order of CIT(A) in deleting the addition of ₹ 1,30,000/- made on account of unexplained cash deposits in the bank account? 2. A few facts relevant for the decision of the controversy involved as narrated in the appeal may be noticed. The assessee company is carrying on the business of real estates, purchase, construction, sale of buildings of flats, shops, godown etc. It filed its return of income for the assessment year 2006- 07 on 30.11.2006 declar .....

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m other sources (interest received) ₹ 1,11,700/- Total income ₹ 89,20,240/- Aggrieved by the order, the assessee filed appeal before the Commissioner of Income Tax (Appeals) [CIT(A)]. Vide order dated 6.10.2009, Annexure 2, the CIT(A) partly allowed the appeal deleting the additions made by the Assessing Officer. Not satisfied with the order, the revenue filed appeal before the Tribunal. Vide order dated 30.8.2010, Annexure 3, the Tribunal dismissed the appeal. Hence the instant appe .....

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ncurrent findings have been recorded by the CIT(A) and the Tribunal on appreciation of entire evidence on record on all the four issues. With regard to the first issue regarding deleting the addition of ₹ 38,50,000/-, the Assessing Officer noticed that the assessee had raised unsecured loans of ₹ 2.21 crores during the relevant period. The assessee was asked to produce the confirmation from whom the said loans were raised. The assessee vide letters dated 17.11.2008 and 23.12.2008 fur .....

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the CIT(A), it was noticed that the assessee had filed confirmation statements of unsecured loans in respect of Shri Deepak Mahindra, Dr. Murari Lal Aggarwal and Shri Rajinder Mohan Singla. Their PAN numbers were also mentioned in the said confirmation statements. Thus, the Assessing Officer was not held to be justified in making the addition on this ground. The findings recorded by the CIT(A) were upheld by the Tribunal with the following observations:- 4. We find no merit in the said ground o .....

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he requisitions of the Assessing Officer, there is no merit in any disallowance. We confirm the order of CIT(A) and dismiss ground No.1 raised by the revenue. Learned counsel for the revenue could not demonstrate that the conclusion of the Tribunal was erroneous or perverse in any manner. 5. Taking up second addition with regard to ₹ 21,55,000/- on account of alleged unexplained payment for purchase of land, the Assessing Officer noticed that the purchase consideration had been shown at &# .....

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and had been shown to be confirmed by the sellers and there was no evidence of payment in excess of that recorded in the conveyance deed, there was no case for making addition of ₹ 21,55,000/-on the allegation that the assessee had executed the conveyance deed underhand to the extent of ₹ 21,55,000/-. Thus, the addition was deleted. The findings were upheld by the Tribunal with the following observations:- 7. We have heard the rival contentions and perused the records. The assessee d .....

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case of the seller under section 133(6) of the Act which are placed at pages 20 to 22 of the paper book. The CIT(A) has observed that price of the land as mentioned in the sale deed and not the market price has been confirmed by the seller in response to the queries raised by the Assessing Officer directly to them. Further, there is no evidence of payment of any amount over and above the sale consideration recorded in the sale deed. In the absence of the same, we are in conformity with the order .....

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ced that during the assessment proceedings, the assessee was asked to produce the source of payment of ₹ 24,10,000/- of stamp duty on the purchase of land. It did not furnish any evidence to justify the source of investment. Thus, addition of ₹ 24,10,000/- was made by the Assessing officer to the returned income of the assessee. On appeal by the assessee before the CIT(A), it was observed that the books of account were produced by the assessee before the Assessing Officer also which .....

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source of cash in hand and established the availability of cash, addition was rightly deleted by the CIT(A). The relevant findings recorded by the Tribunal read thus:- 11. We have heard the rival contentions and perused the records. The CIT(A) had deleted the addition in view of the source being established by the assessee. The assessee claims that the said stamp duty has been paid out of the cash available in its books of account. The learned DR for the revenue had not controverted the findings .....

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. The ground No.3 raised by the revenue is dismissed. The findings recorded could not be shown to be result of any misreading or mis-appreciation of material on record on the basis of which it could be urged that the same were unsustainable. 7. Adverting to the fourth issue with regard to addition of ₹ 1,30,000/- on account of alleged unexplained deposits in the bank account of the assessee, it was noticed by the Assessing Officer that in the absence of any explanation by the assessee with .....

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