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TMI Blog2020 (4) TMI 292X X X X Extracts X X X X X X X X Extracts X X X X ..... their sources of the aforesaid funds. That even out of the aforesaid three parties, the advance received from Shri Inderjeet Singh and Shri Charanpreet Singh have been refunded as due to some dispute, the sale deed could not be executed. So far as advance from Shree Radhey Terra Private Limited was concerned, the company has explained that the amount was paid out of the funds available with the company as advance against the purchase of the property. Further, that the requisite details of the company alongwith their PAN numbers, Income-tax returns, bank statements etc. were filed. Further, that the amount was still outstanding due to dispute with the party. Long Term Capital Gains on sale of land - assessee claimed the same to be rural land situated beyond 8 KMs from the Municipal limit, hence, not falling under the capital assets exigible to Long Term Capital Gains - HELD THAT:- As noted that on the similar issue in the assessment year 2011-12, the additions were deleted by him while replying upon the report of the certificate of the Naib Tehsildar (Land Revenue Officer) certifying the fact that the subject land was situated beyond 8KMs of the Municipal Limit - as observed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. CIT(A) vide letter No. 62 dated 05.05.2016? 4. That the appellant craves leave to add or amend any ground of appeal before it is finally disposed off. 3. Ground No.1: The first ground is relating to the action of the CIT(A) in deleting the disallowance made by the Assessing Officer u/s 14A of the Income Tax Act, 1961 (in short 'the Act') read with rule 8D of the Income Tax Rules, 1962 in respect of the notional disallowance of expenditure incurred for earning of tax exempt income. 4. The Assessing Officer noticed that the assessee during the year had earned tax exempt dividend income of ₹ 51,988/-, however, no disallowance of expenditure incurred for earning of tax exempt income was offered. He, further observed that the assessee had not claimed interest expenditure. He, accordingly calculated the disallowance of administrative expenses u/s 14A of the Act read with Rule 8D(2)(iii) of the I.T. Rules at the rate of 0.5% of the total investment at ₹ 2,21,671/-. In appeal, the Ld. CIT(A) deleted the disallowance observing that assessee had not claimed any expenditure which can be related to the investment activity of the assessee. 5. The Ld. Counse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit worthiness and genuineness of transaction. The assessee filed the confirmation in the above said cases with the PAN numbers of the payers, but no ITR return and other details were filed. It was requested to the Assessing Officer to call for the requisite information u/s 133 (6) or u/s 131 and accordingly, the Assessing Officer issued summons u/s 131 to the parties asking them to file the copy of the ITR returns, balance sheet, bank statements. In response to the said notices as mentioned, all parties furnished the relevant information as asked for by the Assessing Officer. The assessee also furnished confirmed copies of account of the parties in his books of accounts, but for the copy of the agreement, it was stated that no such written agreement was made and neither any details of property in respect of which, the advances have been claimed was furnished. The Ld. Assessing Officer doubted the sources of the parties concerned, because as on the date of advance made to the appellant, there were certain amounts by way of transfer entries in the bank account of such persons and, accordingly, the Assessing Officer held that the capacity to pay the amount has not been proved a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hose parties to appear before him. The oral agreements which has been entered between the assessee and those parties has clearly been demonstrated by the relevant bank account entries and their confirmations and the Assessing Officer has not established that amount as received for any other purpose. The amount has been reflected in the respective balance sheets of those parties and, thus the onus which lay upon the appellant stood discharged and it is not a case of the cash credits, but the transactions is only in terms of advances and, thus, nothing adverse have been brought on record by the Assessing Officer for making the addition and hence, the addition of ₹ 70,00,000/- as made by the Assessing Officer deserves to be deleted. 11. Being aggrieved by the aforesaid order of the CIT(A), the Revenue has come in appeal before us. 12. The Ld. DR has submitted that though the assessee had pleaded that the aforesaid amount was received as advance against sale of property, however, the assessee could not produce any written agreement for sale of the property with the aforesaid proposed purchasers. Further, that the assessee failed to prove the creditworthiness of the afores ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of some part of land in financial year 2010-11 relating to assessment year 2011-12 and held that the said land was located at the distance of 7.95 Kms from the Octroi post as existed at that time. The Ld. CIT(A), however, noted that on the similar issue in the assessment year 2011-12, the additions were deleted by him while replying upon the report of the certificate of the Naib Tehsildar (Land Revenue Officer) certifying the fact that the subject land was situated beyond 8KMs of the Municipal Limit. He, further observed that in his report, the Inspector did not mentioned any Khasra number, however, in the report of the Tehsildar, Khasra numbers of the land were mentioned and certificate was given as per the exact details. He observed that the report of the Naib Tehsildar was based on record and, hence, was much authentic, whereas, the report of the inspector was prepared on estimation basis. He, accordingly relying upon the certificate of the Naib Tehsildar held that the land was agricultural rural land not falling in the definition of the capital assets for the purpose of levy of capital gains tax. After considering the rival submissions and going through the record, we do n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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