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TMI Blog2021 (1) TMI 887X X X X Extracts X X X X X X X X Extracts X X X X ..... on of property by BMRCL and this was duly disclosed by the assessee. These receipts and payments were duly reflected in the ICICI Bank s Current A/c No.6251050390981, OTC Road, Bangalore 560 002. As such, it cannot be considered as unexplained investment by the assessee. Accordingly, we delete the addition made by the AO and sustained by the CIT(Appeals) u/s. 69 of the Act. This ground of the assessee is allowed. Addition of capital gain ignoring the fact that the compensation was received by Metro Railway authorities - When the name of BMRCL was mentioned in Form 26AS showing the details of TDS on payment for acquisition of said property, it cannot be doubted that BMRCL has not acquired the said property. In our opinion, the compens ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on mere notion that the property is not shown in the balance sheet dated 31.03.2012 even though it is not business asset. 4. The AO was of the view that as per the balance sheet submitted by the assessee the borrowed loan of ₹ 12,35,245 from ICICI Bank @ 13.50% was taken for business purpose, not for the purpose of housing. Hence it cannot be treated to have been invested in property. Also as per the personal capital account and balance sheet, the drawing is only ₹ 8,00,000/- out of capital of ₹ 1,65,65,547. Because of the fact that in spite of assessee having enough capital, but did not utilize it for the purpose of investment in the property, only ₹ 8,00,000 was treated as for the purpose of investment and the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 11-1-2012, drawn on 1CICI Bank, N.R. Road Branch, Bangalore. 7. In our opinion, the source of payment of ₹ 34.50 lakhs is out of compensation received towards acquisition of property by BMRCL and this was duly disclosed by the assessee. These receipts and payments were duly reflected in the ICICI Bank s Current A/c No.6251050390981, OTC Road, Bangalore 560 002. As such, it cannot be considered as unexplained investment by the assessee. Accordingly, we delete the addition made by the AO and sustained by the CIT(Appeals) u/s. 69 of the Act. This ground of the assessee is allowed. 8. The next issue for consideration is addition of capital gain of ₹ 42,87,532 without appreciating the fact that the compensation was r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owever, assessee has not produced the proof with reference to the same. He therefore supported the order of the CIT(Appeals). 12. We have heard both the parties and perused the material on record. The assessee s property situated at B.V.K. Iyengar Road, Bangalore was acquired by BMRCL. Consequently, for the assessment year under consideration, the assessee received an amount of ₹ 1,23,28,356 which was duly reflected in Form 26AS in the name of assessee. The AO duly considered this amount while giving TDS credit of ₹ 12,32,836. In spite of this, the CIT(Appeals) observed that the assessee has not furnished the proof that land is acquired by BMRCL. In our opinion, when the name of BMRCL was mentioned in Form 26AS showing the de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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