2017 (5) TMI 578

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....pectively pertaining to assessment year 2007-08. First we take up ITA No.1730/Mds./2010 2. The first ground is with regard to confirming the addition of Rs. 1,75,000/- out of Rs. 2,47,000/- made by the ld. Assessing Officer towards unexplained deposit into bank account. 3. The facts of the issue are that the AO noted that the assessee has deposited a sum of Rs. 3,07,000/- into her bank account maintained by the assessee with Indian Bank on 03.04.2006. The assessee explained before the Ld.CIT(A) that the assessee availed the loan from The Coimbatore City Co-operative Bank Ltd., Coimbatore in the name of her husband, Mr. K.Sivasankar as follows:- Name Loan No. Date Amount (Rs.) S.Manimegalai JL/31816/2006 03.04.2006 30,000 ....

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..... 5. We have heard both the parties and perused the material on record. There is no dispute regarding availing of jewellery loan at Rs. 1,75,000/- by assessee's husband on 30.04.2006. The ld.A.R took a plea that this amount was used to deposit into assessee's bank account with Indian Bank on 03.04.2006 and the Department have no evidence to show that the husband used the said jewellery loan amount for any purposes other than lending to assessee. In our opinion, it is appropriate to examine the issue whether the jewellary loan was directly released to assessee's husband in the form of cash or by cheque so as to deposit the same to assessee's Indian Bank account and thereupon to decide whether the jewellery loan availed by assessee's husband....

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....garding rental income, Ld.CIT(A) accepted Rs. 70,000/- and had given a relief. However, in respect of jewel loan availed by assessee's husband Rs. 1 lakhs was not accepted by the Ld.CIT(A) as a source to be deposited into bank account and addition was sustained. Against this, the assessee is in appeal before us regarding this addition of Rs. 1 lakh. 7. As discussed in earlier para, we remit this issue to the file of AO to carry on necessary enquiry regarding jewel loan availed by the assessee's husband to deposit into the assessee's account and decide thereupon. This issue is remitted to the file of AO for fresh consideration. 8. The third issue is with regard to not accepting the amount of Rs. 4 received as advance towards sale of land a....

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....mpracticable. Accordingly, this ground raised by the assessee is rejected. 10. The fourth issue relating to ground Nos. 5, 6 ,7 & 8 is with regard to invoking the provisions of the section 50C of the Act. 10.1 The contention of the assessee is that the assessee is in real estate business and as such income of assessee to be considered as business income and not under the head capital gains. As such, there is no application of Sec.50C of the Act 11. We have heard both the parties and perused the material on record. The assessee has been offered the income under the head "capital gains" from the assessment year 2006-07. In the assessment year under consideration 2007-08, the assessee offered only short term capital gains amounting to Rs. 1....