9911796707
TMI Blog2013 (10) TMI 1086X X X X Extracts X X X X X X X X Extracts X X X X ..... xplained in the books of account. Nobody would like to convert the white money into black money - In the present case, there is no material available on record to show that the assessee company has paid money in cash to the original seller of the land - Addition of Rs.42.5 lacs was deleted – Decided against the Revenue. Addition of Rs.10.00 lacs made by the Assessing Officer on account of unexplained loan – Held that:- M/s. L.N.Seth, HUF of the Karta and one of the Director of the assessee Company, has received the money from his minor children who had received the gift from NRE account. If the addition will have to be made, the same will have to be made in the hands of M/s. L.N.Seth, HUF, and certainly, not in the hands of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account of unexplained loan?" The brief facts of the case are that the assessee is a company engaged in development of land and construction. During the assessment year under consideration which is the second year of operation, the assessee filed the loss return for Rs.1,33,575/-. However, the A.O. has completed the assessment on positive income of Rs.51,16,420/-. During the scrutiny, the A.O. found that the assessee has deposited an amount of Rs.39 lacs in the bank account of Mr. Nankau. Actually, a sum of Rs.42.5 lacs was paid to him by the assessee who in return re-sold the land to the assessee. The A.O. has treated a sum of Rs.42.5 lacs as unexplained income and made the addition in the hands of the assessee. The first appellate auth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ath. No enquiry was made by the A.O. from the original seller of the land as to when and how and from whom they have received the money and sold the land, Mr. Nankau has withdrawn the money from the bank account to purchase the land. Mr. Nankau was also not examined. So, no addition is required. Lastly, he justified the impugned orders. After hearing both the parties and on perusal of the record, it appears that the money was deposited by the company in the account of Mr. Nankau, who has withdrawn the same and purchased the land. Later, the land was re-sold to the assessee's company. In the hands of the assessee's company, the source of the advance was fully explained. In fact, the land was purchased by the assessee's company through Mr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alance sheet of the assessee. The A.O. made an addition of this amount in the hands of the assessee which was upheld by the first appellate authority. However, the Tribunal has deleted the said addition. Sri D.D.Chopra, learned counsel for the department submits that the assessee company has received the money from the father of the Director who received the money from his minor children and who in turn received the money as gift from NRE account of one Fatima Zohra Khan, who in turn received the money from Shri Shakeel Ahmed Khan, who claimed to be uncle of another director of the assessee company. He has drawn the attention to the chart prepared by the A.O. in his order to show that the same is unaccounted money. Lastly, he justified ..... X X X X Extracts X X X X X X X X Extracts X X X X
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