Concessional corporate tax option under section 115BAA survives procedural documentary lapses when statutory compliance and earlier exercise are estab...
ITAT allowed the assessee's appeal. It held that the disputed amount received from a purchaser as advance against sale of two farmhouses, duly supported by executed and cancelled agreements seized during search and subjected to TDS u/s 194I, constituted genuine business advances and not unexplained cash credits u/s 68. The assessee established the investor's creditworthiness and the genuineness of the transaction; hence the s.68 addition was deleted. Further, additions based on documents seized from a third party were quashed as the AO failed to follow the mandatory procedure and obtain approval under Explanation 2 to s.148.
ITAT allowed the assessee's appeal. It held that the disputed amount received from a purchaser as advance against sale of two farmhouses, duly supported by executed and cancelled agreements seized during search and subjected to TDS u/s 194I, constituted genuine business advances and not unexplained cash credits u/s 68. The assessee established the investor's creditworthiness and the genuineness of the transaction; hence the s.68 addition was deleted. Further, additions based on documents seized from a third party were quashed as the AO failed to follow the mandatory procedure and obtain approval under Explanation 2 to s.148.
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