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2016 (5) TMI 847 - ITAT PUNE

2016 (5) TMI 847 - ITAT PUNE - TMI - Deduction u/s. 54B - Held that:- The assessee had merely created his right in the land by entering into an agreement for purchase with M/s. Saldol Industries and obtained power of attorney dated 06-06-2005 in his name. In the balance sheet as on 31-03-2007 the above mentioned land is shown as M/s. Saldol Industries (Advance paid). At the time of sale on 15-02-2008 the assessee transferred the land to the purchaser to M/s. MTC Business Pvt. Ltd. on the basis o .....

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as able to prove the identity of the creditors/lenders nor their creditworthiness. The onus was on the assessee to prove the genuineness, identity and the creditworthiness of the transactions and the creditors. Except for furnishing the name and address of the persons no further details were given by assessee. Thus, the assessee was not able to discharge his onus. The ld. Counsel for the assessee has not been able to controvert the well reasoned and detailed findings of the Commissioner of Incom .....

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ssessee has filed an affidavit dated 04-12-2014 giving reasons for delay in filing of the appeal. The delay in filing of the appeal has been attributed to the illness of the brother of the assessee Shri Punit Goel who was purportedly handling the accounts and tax matter of the assessee. Shri Punil Goel suffered a massive paralytic attack and was hospitalized for almost 4 months. The assessee has also filed medical records and hospital discharge summary of Shri Punil Goel in support of his conten .....

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and M/s. Akash Warehouse Corporation. A survey u/s. 133A of the Income Tax Act, 1961 (hereinafter referred to as the Act ) was conducted at the business premises of the assessee on 09-03- 2011. During the course of survey certain documents relating to purchase and sale of land in the financial years 2005-06 and 2007-08 were impounded. On scrutiny of the sale deeds it transpired that the assessee has earned profit of ₹ 1,15,00,000/- in the period relevant to the assessment year 2008-09. The .....

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No. 102, Hissa No. 4A1 at village Savroli for ₹ 1,05,00,000/- and 15 Gunthas comprising in S. No. 102, Hissa No. 8, at village Savroli for ₹ 15,00,000/-. The Assessing Officer after examination of the records came to the conclusion that the assessee is engaged in the business of sale and purchase of land and accordingly, treated the income of ₹ 1,18,00,000/- from sale of land as business income in the impugned assessment year. Apart from the above the Assessing Officer made add .....

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ee submitted that during the period relevant the assessment year under appeal the assessee had sold two parcel of agricultural land. Since, the agricultural land does not fall within the meaning of capital asset the assessee was not liable for any capital gains on the sale of aforesaid land. The authorities below have erred in coming to the conclusion that the assessee is engaged in the business of sale and purchase of land. The assessee during the course of survey had never admitted that he was .....

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to claim deduction u/s. 54B of the Act. The ld. Counsel further contended that the Assessing Officer has erred in making addition of ₹ 21,75,499/- u/s. 68 as unexplained cash credit. The assessee had given the details of various persons along with the address. However, the Assessing Officer failed to make any enquiries from them. The alleged unexplained cash credits was in fact outstanding amounts payable to the creditors and were not in the nature of loans and deposits. The assessee had .....

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t after survey has admitted that the assessee had entered into sale transactions with MTC Business Pvt. Ltd. and has not offered the income arising there from in the assessment year 2008-09. The ld. DR also admitted that the transactions are shown in Balance sheet for the period relating to financial year 2007-08. The ld. DR referred to the statement of assessee recorded u/s. 33A on 09-03-2011 at page 121 of the paper book. The ld. DR particularly referred to Q. Nos. 11 and 13 where the assessee .....

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tives of rival sides and have examined the orders of the authorities below. We have also examined the documents placed on record in the form of paper book referred during the course of making submissions. The contention of the assessee is that the assessee is not engaged in the land trading activity. The assessee had sold agricultural land during the period relevant to the assessment year under appeal. Since, the agricultural land does not fall within the definition of capital asset within the m .....

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of his order. For the sake of brevity we are not reproducing the same in our order. The Commissioner of Income Tax (Appeals) after examining the documents on record and the submissions of the assessee has upheld the findings of Assessing Officer with respect to the active indulgence of assessee in sale and purchase of land. The ld. DR has drawn our attention to the statement of the assessee recorded u/s. 131 of the Act. In reply to Q. No. 4 the assessee has admitted that the sale deeds relate t .....

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d not offered by me for the A.Y. 2008-09, but the transaction is shown in the balance sheet of the F.Y. 2007-08. 7. A further perusal of the statements recorded on 10-03-2011 and on 09-03-2011 (Q. Nos. 11, 13, and 15) and the material seized it is evident that the assessee was engaged in the regular business of sale and purchase of land and land development. Thus, the contentions of the ld. Counsel are that the assessee was not engaged in regular sale and purchase of land is not sustainable. It .....

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