TMI Blog2019 (11) TMI 330X X X X Extracts X X X X X X X X Extracts X X X X ..... mption u/s.54 of the Act. So far as remaining amount of ₹ 3 lakhs is concerned, undisputedly, the assessee issued a cheque to West Bengal Housing Board alongwith application for allotment of house, but the same was not allowed and no allotment was made to the assessee. In our humble understanding, the provisions of section 54 of the Act making an application for allotment of a house with West Bengal Housing Board or any other Housing Board is not sufficient to claim exemption u/s.54 of the Act. Therefore, the authorities below are right in dismissing the claim of exemption u/s.54 of the Act pertaining to claim of ₹ 3 lakhs. Hence, Ground No.1(B) is dismissed. Addition of foreign trip - HELD THAT:- Neither before the lower authorities nor before this Bench, the assessee has filed any cogent and reliable evidence to show that the expenses incurred in Vietnam and UAE tour were borne by the host The CBDT Circular No.5 /2012 dated 1.8.2012 clearly provides that the expenses incurred in providing freebees to medical practitioner by Pharmaceutical and allied health sector industries and inadmissible expenses. In the present case, admittedly, the assessee made foreig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act by rejecting the claim of the assessee to have deposited ₹ 26 lacs in capital gain deposit account and ₹ 3 lacs with West Bengal Housing Board. (B) That the CIT(A) was not justified while ignoring the direct evidence of the capital gain deposit account and application money with West Bengal Housing Board. 3. Apropos this ground, ld A.R. submitted that the Assessing Officer has made addition on account of disallowance of ₹ 26,00,000/- u/s.54 of the Act by observing that the amount was transferred to STDR A/c and no evidence was there that the amount was invested in capital gains account. The CIT(A) confirmed the addition without any basis and discarding the sustainable evidence filed by the assessee i.e. certified issued from the bank. Ld counsel for the assessee submitted that the very addition made by the AO and confirmed by the CIT(A) may kindly be deleted. 4. Ld A.R. also submitted that the Assessing Officer has made addition of ₹ 3,00,000/- u/.s.54 of the Act by observing that this amount was advanced to West Bengal Housing Board and no evidence was filed that this amount was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not disputed that the amount was initially parked in the capital gains account and later on the same was transferred to fixed deposit account. No details of the same were furnished before us at the time of hearing. Hence, we set aside the addition of ₹ 26 lakhs to the file of the Assessing Officer to verify once again whether the deposit of money of ₹ 26 lakhs in bank account fulfil the requirement of section 54 of the Act. Accordingly, this part of ground is restored to the file of the AO for verification and decision afresh about claim of exemption u/s.54 of the Act. Hence, Ground No.1(A) is allowed for statistical purposes. 7. So far as remaining amount of ₹ 3 lakhs is concerned, undisputedly, the assessee issued a cheque to West Bengal Housing Board alongwith application for allotment of house, but the same was not allowed and no allotment was made to the assessee. In our humble understanding, the provisions of section 54 of the Act making an application for allotment of a house with West Bengal Housing Board or any other Housing Board is not sufficient to claim exemption u/s.54 of the Act. Therefore, the auth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmaceutical and allied health sector industry. He also referred to CBDT Circular No.4/.2012 dated 1.8.2012. Lastly, ld D.R. submitted that the claim may kindly be dismissed. 11. On careful consideration of rival submissions, we are of the considered view that neither before the lower authorities nor before this Bench, the assessee has filed any cogent and reliable evidence to show that the expenses incurred in Vietnam and UAE tour were borne by the host The CBDT Circular No.5 /2012 dated 1.8.2012 clearly provides that the expenses incurred in providing freebees to medical practitioner by Pharmaceutical and allied health sector industries and inadmissible expenses. In the present case, admittedly, the assessee made foreign tour to Vietnam and UAE during the relevant financial period and do not show or procure any expenses incurred towards such foreign trips. Therefore, the authorities below were right in making addition u/s.69C of the Act treating the same as undisclosed expenditure of the assessee during the relevant financial period. Accordingly, Ground No.2 of appeal is dismissed. 12. Ground No.3 of appeal reads as under: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isbelieved the income of ₹ 14,50,000/- towards agricultural income as the same was not reflected in the bank account of the assessee. There may be various reasons to park the fund out of agricultural income in the bank or in hand to meet further expenditure for this purpose. It is not the case of the revenue that similar amount of agricultural income should be reflected in the bank account to prove the agricultural income. There was no evidence to establish that the assessee has sold the agricultural land or that the assessee has stopped the agricultural operations. The Revenue has not placed on record any positive material to disbelieve the agricultural income claimed by the assessee, therefore the addition of ₹ 14,50,000/- cannot be sustained. Hence, we set aside the orders of lower authorities and direct the Assessing officer to delete the addition of ₹ 14,50,000/- and allow this ground of the assessee. 16. In the result, appeal of the assessee is partly allowed. Order pronounced in the open court under Rule 34(4) of the Income Tax (Appellate Tribunal) Rules, 1963 on 30 / 10/2019. - - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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