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TMI Blog2023 (6) TMI 572X X X X Extracts X X X X X X X X Extracts X X X X ..... parties and perused the material available on record. We note that the assessee is an individual engaged in the business of manufacturing and trading in open gym equipment and also derives income from salary, business and profession and other sources. During the course of assessment proceedings, the AO noticed that the assessee claimed deduction u/s. 54F of the Act and asked the assessee to explain how the conditions mentioned in section 54F are satisfied. It was explained that the assessee purchased residential bungalow on 05-05- 2014 which is within one year before the date of sale of plots on 06-07- 2015 as Assignment deed dated 10-04-2015 entered thereto to sell the two plots which were finally registered on 06-07-2015. The AO held the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y argued that the stamp paper was purchased on 06-09- 2014 and made the Assignment deed on 10-04-2015 which is beyond six months of validity of the said stamp paper. He argued that the AO rightly disbelieved the said Assignment deed dated 10-04-2015 as self-serving document entered mainly to justify the untenable claimed u/s. 54F of the Act. 5. The ld. AR placed on record the decision of Hon'ble Supreme Court in the case of Thiruvengada Pillai Vs. Navaneethammal & Anr. in Writ Petition (Civil) 290 of 2001 and submitted there is no impediment for stamp paper purchased more than six months prior to the proposed date of execution, being used for a document. On careful reading of the said decision dated 19-02-2008, we note that the Hon'ble Sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 was executed as invalid. 6. In the present case, the Assignment deed dated 10-04-2015 entered by the assessee with M/s. Samsun Industries Pvt. Ltd. for transfer of his leasehold rights on two plots granted by the MIDC, is valid which is entered in pursuance of his application dated 18-03-2015 which resulted into order dated 16-04-2015 passed by MIDC granting consent to transfer assessee's leasehold rights to M/s. Samsun Industries Pvt. Ltd. if the period reckoned from the date of his application to the MIDC on 18-03- 2015 along with the date of Assignment deed on 10-04-2015 agreeing to transfer said leasehold rights to M/s. Samsun Industries Pvt. Ltd., in our opinion, the assessee's case falls under within one year prior to purchase of r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sundry creditors are appearing on the liability side of the Balance sheet as there was no proper explanation, added the said amount to the total income of the assessee u/s. 68 of the Act. The CIT(A) observed that the assessee paid taxes on gross profit shown in the trading account basing on the same alleged wrong entry and the contention of the assessee that it was not in his knowledge is misplaced. Accordingly, the order of AO in making the addition u/s. 68 of the Act was confirmed on account of sundry creditors. 9. Before us, the ld. AR submits that the assessee furnished all required information to his Chartered Accountant for filing Income Tax return for the year under consideration. The said Chartered Accountant shown entire purchases ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chases with regard to VAT return / manufacturing trading profit and loss account for the F.Y. 2015-16 which shows the purchases as per manufacturing trading account to an extent of Rs. 8,74,06,260/-. Admittedly, this reconciliation, as that of VAT returns of Quarter 1 to 4 (April, 2015 to March, 2016) were not before the AO, therefore, in our considered view, taking into consideration the facts and circumstances of the case and also the additional evidences in the form of Paper Book-II filed before us for the first time and in the interest of justice, we deem it proper to remand the issue to the file of AO to decide the issue afresh in terms of VAT return and reconciliation of purchases with regard to the said VAT return and pass order, in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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