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The Income Tax Officer, Ward-2 (3) , Ghaziabad Versus Shri Swaroop Chand Sharma s/o. Shri Bhawan Sahai Sharma, Shaheed Memorial Public School

2017 (9) TMI 817 - ITAT DELHI

Addition on estimated business income - estimation of higher income - CIT-A deleted addition - Held that:- No interference is called for in the matter. The A.O. has not given any reason for estimating the higher income of assessee. The findings of the A.O. are not corroborated by any evidence or material on record. Therefore, on mere estimation, enhancement of income, is without any basis. Accordingly, the Ld. CIT(A) correctly deleted the addition - Decided against revenue - Unexplained cash .....

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ank account. Thus, the assessee has been able to prove that he received advance against sale of property and thus, proved the identity of the purchaser and his creditworthiness because he has withdrawn the amount in cash from his bank prior to entering into an agreement to sale with the assessee. - Decided against revenue - Addtion u/s 68 - proof of creditworthiness of Shri Sanjay Tyagi for giving loan of ₹ 18 lakhs to the assessee through banking channel - Held that:- The assessee fil .....

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at this addition is made by the A.O. without giving opportunity to the assessee. This finding of fact has not been disputed through any evidence or material on record. When A.O. made this addition without giving opportunity to the assessee to explain credit of ₹ 18 lakhs, this itself is sufficient to delete the addition against the assessee because it violates principles of natural justice - Decided against revenue - Addition on account of interest on loan - Held that:- No merit in thi .....

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support the fact that assessee made investment in property out of his own source. Thus, the assessee explained the source of investment in property.- Decided against revenue - ITA.No.4274/Del./2016 - Dated:- 13-9-2017 - SHRI BHAVNESH SAINI, JUDICIAL MEMBER For The Revenue : Shri T. Vasanthan, Sr. D.R. For The Assessee : Shri Mukesh Kumar Bansal, C.A. ORDER This departmental appeal has been directed against the order of the Ld. CIT(A), Ghaziabad, dated 18th May, 2016, for the A.Y. 2012-2013. 2 .....

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A) for following Rule-46A of the I.T. Rules. However, Learned Counsel for the Assessee submitted that all the papers now filed in the paper book were filed before the authorities below and also submitted that since no ground have been raised by the Revenue in the departmental appeal for violation of Rule-46A of the I.T. Rules, therefore, the objections of the Ld. D.R. may be rejected. 3. I have considered the rival contentions and do not find any merit in the contention of the Ld. D.R. Ld. D.R. .....

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en no specific ground has already been raised in the grounds of appeal by Revenue, the contention of the Ld. D.R. is rejected. 4. On ground No.1, the Revenue challenged the deletion of addition of ₹ 2,24,675 on account of estimated business income. The A.O. noted that assessee filed return of income at ₹ 2,07,325 stating as per section 44AD of the I.T. Act, when assessee was required to prove the nature of services rendered and nature of goods treated, it has been stated that in real .....

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CIT(A) that assessee filed return of income on the basis of the details contained in the bank account and A.O. made the addition merely on estimate basis. The Ld. CIT(A) accepted the contention of assessee and held that A.O. made the addition based on surmises and conjectures and accordingly, addition was deleted. 5. After considering the rival contentions, I am of the view that no interference is called for in the matter. The A.O. has not given any reason for estimating the higher income of as .....

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om whom advance has been shown. The A.O. noted that assessee has deposited a sum of ₹ 10 lakhs in cash on 28th April, 2011 in Syndicate Bank. The assessee contended that the said cash was received by him as advance relating to sale of residential house from Shri Devender Sharma. The A.O. however, noted that since assessee has not proved the capacity of the person for advancing such amount in cash, addition of ₹ 10 lakhs was made. Assessee reiterated the same submissions before the Ld .....

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roved the creditworthiness of the purchaser wherein the creditor has sold the property whose sale proceeds are credited in the account. The addition was accordingly, deleted. 7. After considering the rival contentions, I do not find any merit in this ground of appeal of the Revenue. The assessee filed copy of the sale agreement dated 20.04.2011 (PB-49) between assessee and Shri Devender Sharma through which ₹ 10 lakhs was received by assessee in cash as advance against sale of the property .....

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the same is accordingly, dismissed. 8. On ground No.3, the Revenue challenged the deletion of addition of ₹ 18 lakhs made as unexplained cash deposits in his bank account. The A.O. required the assessee to prove the identity / creditworthiness of Shri Sanjay Tyagi relating to deposit of ₹ 18 lakhs in Syndicate Bank on 12.12.2011 with evidence. The assessee filed certificate issued by Shri Sanjay Tyagi mentioning his personal Account No. which is considered to be not an authentic evid .....

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d PAN of the creditor was not sufficient. The Ld. CIT(A) found that there is nothing on record to support that A.O. has doubted the identity of the creditor or has asked the assessee to prove the creditworthiness. The action of the A.O. was unilateral without giving an opportunity to the assessee. The Ld. CIT(A) found that Smt. Javitri Devi, grand mother of Shri Sanjay Tyagi has advanced ₹ 1 crore to Shri Sanjay Tyagi out of sale proceeds of the family property. Shri Sanjay Tyagi has advan .....

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which is supported by the copy of the bank statement. The assessee also filed copy of the bank account of Smt. Javitri Devi to show that she has given ₹ 1 crore to Shri Sanjay Tyagi. Therefore, the assessee proved all the ingredients of Section 68 of the I.T. Act in the matter. Ld. CIT(A) noted that this addition is made by the A.O. without giving opportunity to the assessee. This finding of fact has not been disputed through any evidence or material on record. When A.O. made this addition .....

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40,33,333 to Shri F.K. Yadav and no interest has been shown. The A.O. made the addition of ₹ 3,27,000. 11. The assessee reiterated the same facts before the Ld. CIT(A) and it was submitted that these transactions are purchase consideration paid by the assessee and no advance paid. The assessee purchased agricultural land along with two other co-owners and purchase deed clearly support the explanation of assessee. The Ld. CIT(A), accordingly deleted the addition. 12. After considering the r .....

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