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TMI Blog2012 (8) TMI 1057X X X X Extracts X X X X X X X X Extracts X X X X ..... clause 10 the purchaser was free to do the developmental work on the land and was also free to sell the same to any third party for which the assessee had no objection. It cannot be said that it was a loan or an advance to the assessee. The contents of the sale agreements are very much clear that it was a clearcut agreement of sale. No contrary facts or decision was brought to our notice by either side and more specifically the Revenue. In view of these facts, we are not in agreement with the conclusion drawn in the assessment order and affirm the stand of the ld. CIT(A) in accepting the claim of the assessee, resultantly, there is no merit in the appeal of the Revenue. X X X X Extracts X X X X X X X X Extracts X X X X ..... arned Sr. DR defended the impugned order. 5.1 We have considered the rival submissions of ld. representatives of both sides and perused the material available on record. With regard to the addition made u/s 2(22)(e) of the Act, the Assessing Officer observed that during the year, under consideration, the assessee has taken the following amounts of ₹ 1,94,58,728/- from the company:- Data Particulars Debit Amount Credit Amount 01/04/04 By op. Bal 8,798,728 01/04/04 By cheque 600.000 08/04/04 By cheque 1,150,000 08/04/04 By cheque 1,550,000 02/06/04 By cheque 800.000 02/06/04 By cheque 1,900,000 02/07/04 By cheque 1,750,000 18.09.04 By cheques 1,00,000 05.10.04 By cheques 700,000 30 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... record (pages 59 to 63 of the paper book). We find that the land was owned by the assessee which he agreed to sell to M/s Puzzling Equipref Services Private Limited for a consideration of ₹ 2,53,60,000/-. As per the terms of the agreement, M/s Puzzling Equipref Services Private Limited was required to pay a part of the sale consideration in advance. The agreement to sell also witnessed payment of these amounts through account payee cheques to the assessee on various dates as mentioned at page 3 of the agreement to sell. Thus, we find that the amount so received by the assessee was against sale of land owned by him title of which is clear from the documents placed on record. Since the amount was received as a sale consideration in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ous dates which were mentioned on the said sale agreement. Since the amount was received as a sale consideration in the normal course of the business, it was held that the same cannot be branded as loan and advances. This issue was decided in favour of the assessee. The ld. CIT(A), following the decision of the Tribunal, analysed the facts and deleted the addition which is under challenge before this Tribunal. 5. The Tribunal while deciding the identical facts for AY 2005-06 found that the agreement to sale also witnessed payment of the impugned amount through account payee cheques on various dates as per the terms and conditions of the sale agreement. Undisputedly, the amounts were received by the assessee against sale of land and the tit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... land owned by the assessee in the normal course of business, therefore, it cannot be branded as loan and advances. We have perused the agreement to sale (page 28 to 32 of the paper book). As per clause 2 of the said agreement (page 30 of paper book), the amount of ₹ 2,53,60,000/- was agreed to be given to the assessee by the purchaser and part of the payment was received through cheque. The assessee was also supposed to get conversion of the land within two months. As per clause 10 (page 31 of the paper book), the purchaser was free to do the developmental work on the land and was also free to sell the same to any third party for which the assessee had no objection. In view of these facts, it cannot be said that it was a loan or an a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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