2025 (11) TMI 1756

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....out of the appeal before it against the order dated 28.12.2018 passed u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') by the DCIT, Circle-16(1), Delhi (hereinafter referred to as the Ld. AO). 2. Heard and perused the record. The assessee is a private limited company and during the instant year, the AO had made an addition u/s 68 of the Act doubting the genuineness of the transaction of advance of Rs. 2,50,00,000/- received allegedly against sale of property. The ld. AO in para 5.1 had observed as follows:- "5.1 As discussed in the legal position above, burden of proving source of credit in books of accounts is on the assessee. The onus is on the assessee to give satisfactory explanation in order to ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ly, the assessing officer is directed to delete this addition of Rs. 2,50,00,000/- made in the order under section 143(3) of the Income Tax Act, 1961 dated 28.12.2018 for the assessment year 2016-17. Thus, the appellant gets relief of Rs. 2,50,00,000/-. Therefore, the grounds of appeal Nos. 2, 4, 5, 6 and 12 are allowed." 4. The Revenue is in appeal raising the following grounds:- "Whether on the facts and circumstances, the Ld. CIT(A) was justified in deleting the addition made by AO u/s 68 of the Act by merely considering that the same amount was paid back by the assessee in subsequent years? 2) Whether on the facts and circumstances, the Ld. CIT(A) was justified in ignoring the facts, that the assessee has failed to ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....bted the transaction and alleged it to be not genuine. However, the ld.CIT(A) has duly taken into consideration the fact that the prospective purchaser had deducted TDS of Rs. 2,50,000/- being 1% of Rs. 2.50 crores and the same was duly deposited on 31.03.2016 and a copy of Form 26QB was also filed before the ld.AO and the assessee had received Rs. 2,47,50,000/- which is reflected in the bank account statements. Thus, that sufficiently repels the contention of the ld. DR and also of the AO that the assessee has raised an afterthought story. As a matter of fact, the prospective sale was between two related parties or family holdings wherein it was mutually agreed upon to enter into a written agreement after the receipt of complete transactio....