Tribunal upholds CIT(A) orders, dismissing Revenue's appeals. Protective additions by AO deemed unsustainable.

The Tribunal upheld the CIT(A)'s orders, dismissing the Revenue's appeals. The Tribunal found that the CIT(A) correctly appreciated the facts and evidence, concluding that the protective additions made by the AO were not sustainable. The amounts in question were received through banking channels, duly reflected in the assessee's bank accounts, and were fully explained. Therefore, the deletions of the additions by the CIT(A) were upheld.

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Issues Involved:
1. Deletion of the addition of Rs. 2,26,00,000/- made by AO on account of investment in land from undisclosed income.
2. Deletion of the addition of Rs. 63,00,000/- made by AO under Section 68 of the IT Act on a protective basis.
3. Deletion of the addition of Rs. 5,00,00,000/- made by AO under Section 68 of the IT Act.

Detailed Analysis:

Issue 1: Deletion of the addition of Rs. 2,26,00,000/- made by AO on account of investment in land from undisclosed income
The Revenue contended that the assessee's share in the cash payment of Rs. 34.70 crores for the purchase of land was Rs. 2.26 crores, considered as an investment from undisclosed income. The AO made a protective addition in the hands of the assessee and a substantive addition in the hands of M/s Om Metal Developers Private Limited. The CIT(A) deleted the addition, noting that the assessee only made cheque payments to Om Metal, and no cash payment was made by the assessee. The property was not purchased in the name of the assessee, and there was no evidence to attribute the cash payment to the assessee. The CIT(A) concluded that even if the total amount paid, including the cash portion, was considered, the assessee's share was less than the amount paid by cheque. Therefore, the protective addition in the hands of the assessee was not sustainable. The Tribunal upheld the CIT(A)'s order, dismissing the Revenue's ground.

Issue 2: Deletion of the addition of Rs. 63,00,000/- made by AO under Section 68 of the IT Act on a protective basis
The AO made a protective addition of Rs. 63,00,000/- in the hands of the assessee, considering the amount as unexplained. The CIT(A) observed that the amount was received through banking channels and was duly reflected in the assessee's bank accounts. The CIT(A) noted that the complete books of accounts, bank statements, and transactions were explained to the AO, and no adverse inference was drawn. The amount represented share application money received from NKP Holding Pvt. Ltd., a group concern also assessed by the same AO. The CIT(A) concluded that the amount was fully explained and deleted the protective addition. The Tribunal upheld the CIT(A)'s order, dismissing the Revenue's ground.

Issue 3: Deletion of the addition of Rs. 5,00,00,000/- made by AO under Section 68 of the IT Act
The AO made a protective addition of Rs. 5,00,00,000/- in the hands of the assessee, considering the transactions as unexplained. The CIT(A) observed that the amounts were received through banking channels and were duly reflected in the assessee's bank accounts. The CIT(A) noted that the complete books of accounts, bank statements, and transactions were explained to the AO, and no adverse inference was drawn. The amount represented share application money received from Macro Leafin Pvt. Ltd., a group concern also assessed by the same AO. The CIT(A) concluded that the amount was fully explained and deleted the protective addition. The Tribunal upheld the CIT(A)'s order, dismissing the Revenue's ground.

Conclusion:
The Tribunal upheld the CIT(A)'s orders for all the issues, dismissing the Revenue's appeals. The Tribunal found that the CIT(A) had correctly appreciated the facts and evidence, and the protective additions made by the AO were not sustainable. The amounts in question were received through banking channels, duly reflected in the assessee's bank accounts, and were fully explained. Therefore, the deletions of the additions by the CIT(A) were upheld.

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