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TMI Blog2017 (6) TMI 1291X X X X Extracts X X X X X X X X Extracts X X X X ..... e in the transaction negotiated by it for purchase of property, on ground that the impugned transaction with Global Properties is not genuine and the expenditure in question was not incurred wholly and exclusively for the purpose of the appellant. Therefore, it is prayed to cancel the addition of Rs. 60,00,000/-." 3. The basic facts include that the assessee is engaged in the Construction, property development and leasing of properties. He filed the return of income declaring total income of Rs. 10.67 crores (rounded off). At the end of the assessment proceedings, AO determined the total income at Rs. 11,26,92,440/- after making a solitary addition of Rs. 60 lakhs on account of release of rights. 4. Relevant facts for this addition includ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... intention of diversion of profits for saving of the taxes. It is also mentioned that in Para No.3 there was discussion regarding the said payment without making TDS u/s.194H of the Act. AO is of the view that the said amount constitutes Commission and the same is allowable only after the TDS is effected, failing which the provisions of section 40(a)(ia) of the Act shall come into operation. Eventually, he made the said addition rejecting the arguments of the assessee. 5. During the First Appellate proceedings assessee could not improve his case. Therefore, the CIT(A) confirmed the addition made by the AO. 6. Aggrieved with the same assessee is in appeal before us. 7. Shri Pramod Shingte, Ld. Counsel for the assessee narrated the above fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the parties on this narrow issue of allowing of Rs. 60 lakhs paid by the assessee to M/s. Global Properties. We find that there is no dispute on the fact of payment of the said amount involving the banking channels. Nothing is brought on record to suggest that the money is repaid in cash form or otherwise to the assessee by M/s. Global Properties. It is also undisputed that both assessee as well as M/s. Global Properties are the taxpayers paying taxes at maximum marginal rate of taxes. The letter placed at page 72 of the paper book is undated, which is undisputed. However, there is no evidence brought on records by the AO to suggest that the said page is not genuine. In our view, the said payment of Rs. 60 lakhs to M/s. Global Properties ..... X X X X Extracts X X X X X X X X Extracts X X X X
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