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TMI Blog2016 (5) TMI 799X X X X Extracts X X X X X X X X Extracts X X X X ..... he sale price i.e.Rs. 2,15,90,000/- in their hands and the same was accepted while assessment order passed under section 143(3) of the Act. The assessee has furnished on record the information sought by the Assessing Officer in the case of the seller under section 133(6) of the Act which are placed at pages 20 to 22 of the paper book. The CIT(A) has observed that price of the land as mentioned in the sale deed and not the market price has been confirmed by the seller in response to the queries raised by the Assessing Officer directly to them. Further, there is no evidence of payment of any amount over and above the sale consideration recorded in the sale deed. In the absence of the same, we are in conformity with the order of the CIT(A) in deleting the addition of ₹ 21,55,000/-. In any case, the addition, if any, under the provisions of section 50C of the Income Tax Act are attracted in the hands of the seller and not in the hands of the purchaser - Decided in favour of assessee Addition on unexplained payment of stamp duty etc. for the purchase of land - Held that:- he assessee claims that the said stamp duty has been paid out of the cash available in its books of account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e on account of unexplained investment in purchase of land? iii) Whether on the facts and in the circumstances of the case, the Hon'ble ITAT is right in upholding the order of CIT(A) in deleting the addition of ₹ 24,10,000/- made on account of unexplained payment of stamp duty? iv) Whether on the facts and in the circumstances of the case, the Hon'ble ITAT is right in upholding the order of CIT(A) in deleting the addition of ₹ 1,30,000/- made on account of unexplained cash deposits in the bank account? 2. A few facts relevant for the decision of the controversy involved as narrated in the appeal may be noticed. The assessee company is carrying on the business of real estates, purchase, construction, sale of buildings of flats, shops, godown etc. It filed its return of income for the assessment year 2006- 07 on 30.11.2006 declaring total income at Rs. Nil. Assessment under Section 143(3) of the Act was completed on 30.12.2008, Annexure-1 and the following additions were made:- i) Addition on account of unexplained unsecured loans ₹ 38,50,000/-. ii) Under hand p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmissions on 23.12.2008 before the assessing authority. While computing the income for the year under consideration, the Assessing Officer observed that the assessee had not complied with the requirements as per letter issued on 22.12.2008 and confirmation of balance unsecured loans of ₹ 38,50,000/- had not been furnished. Thus, addition of ₹ 38,50,000/- was made. On appeal before the CIT(A), it was noticed that the assessee had filed confirmation statements of unsecured loans in respect of Shri Deepak Mahindra, Dr. Murari Lal Aggarwal and Shri Rajinder Mohan Singla. Their PAN numbers were also mentioned in the said confirmation statements. Thus, the Assessing Officer was not held to be justified in making the addition on this ground. The findings recorded by the CIT(A) were upheld by the Tribunal with the following observations:- 4. We find no merit in the said ground of appeal raised by the revenue in view of the confirmations being filed by the assessee in respect of the balance three loan creditors i.e. S/Shri Deepak Mahindra, Dr. Murari Lal Aggarwal and Rajinder Mohan Singla. The assessee has also furnished on record the confirmation of the aforesaid parties at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the market price has been confirmed by the seller in response to the queries raised by the Assessing Officer directly to them. Further, there is no evidence of payment of any amount over and above the sale consideration recorded in the sale deed. In the absence of the same, we are in conformity with the order of the CIT(A) in deleting the addition of ₹ 21,55,000/-. In any case, the addition, if any, under the provisions of section 50C of the Income Tax Act are attracted in the hands of the seller and not in the hands of the purchaser. The approach of the Tribunal was not shown to be against the record warranting interference by this Court. 6. In respect of third addition of ₹ 24,10,000/- on account of alleged unexplained payment of stamp duty etc. for the purchase of land, it may be noticed that during the assessment proceedings, the assessee was asked to produce the source of payment of ₹ 24,10,000/- of stamp duty on the purchase of land. It did not furnish any evidence to justify the source of investment. Thus, addition of ₹ 24,10,000/- was made by the Assessing officer to the returned income of the assessee. On appeal by the assessee before the CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upholding the findings recorded by the CIT(A), it was recorded by the Tribunal that the assessee had also furnished copy of the bank statement of Shri Gulshan Arora from whom a sum of ₹ 90,000/- was received by cheque and the balance ₹ 40,000/- were deposited out of cash in hand available with the assessee. The relevant findings recorded by the Tribunal read thus:- 13.The said explanation was available on record and the assessee had also furnished the copy of bank statement of Shri Gulshan Arora, from whom a sum of ₹ 90,000/- was received by cheque and the balance ₹ 40,000/- was deposited out of cash in hand available with the assessee and the photocopy of relevant pages of cash book was furnished on record. The CIT(A) deleted the addition of ₹ 1,30,000/-. We are in conformity with the order of CIT(A) in view of the explanation of the assessee wherein a sum of ₹ 90,000/- has been received vide cheque from Shri Gulshan Arora, who in turn has confirmed the same. The balance ₹ 40,.000/- is claimed by the assessee to have been deposited in cash out of the cash available, which is evidenced by the entries in the cash book. In the absence of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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