AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (2) TMI 1775
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....dated 31.03.2022 by the Assessing Officer, NFAC (hereinafter referred to as "ld. AO"). 2. The revenue has raised the following grounds of appeal before us:- "1. That the Ld. CIT(A), NFAC, has failed to appreciate the fact that the assessee did not furnish any documents regarding payment of various amounts in cash, viz Rs. 3,37,000/- as the amount paid for purchase of stamp paper Rs. 7,000/- paid in cash to each of Sh. Sabhir Khan and Sh. Munna Khan Rs. 20,000/- as registration fees and Rs. 10,000/- as fee paid to Advocate. 2. That the Ld. CIT(A), NFAC has failed to appreciate the fact that in spite of multiple opportunities being provided to it, the assessee could not explain the discrepancy noted in the ledger accounts....
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.... 8. That the order of the Ld. CIT(A), NFAC being erroneous in law and on fact be set aside and order of the AO be restored." 3. We have heard the rival submissions and perused the materials available on record. The Assessee is an Association of Persons (AOP) and had filed its return of income for the assessment year 16-17 on 31-03-2017 declaring nil income. The learned AO observed from the assessment order already framed under section 143(3) of the Act that Assessee had purchased a piece of land in the name of Shri Chaudhary Beeri Singh Education Society to the extent of 0.8750 hectares amounting to Rs. 48,14,000 and paid stamp duty of Rs. 3,37,000/-. The circle rate of that land was Rs. 55,00,000/- per hectare. The total cost o....
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....sessee society is registered under section 12AA of the Act vide order dated 10-1-2012 issued by the Learned Commissioner of Income Tax-II, Agra. It was clarified before the learned AO that during the year under consideration, the Assessee has purchased a piece of land to the extent of 0.8750 square hectares for Rs. 48,14,000/- against the rate as prescribed by District Magistrate Agra for stamp duty value of Rs. 48,12,500 (5500000 * 0.875 hectares). The Assessee paid a sum of Rs. 3,37,000/- in cash towards purchase of stamp papers and Rs. 20,000/- for registration fees and 10,000/- for advocate fees. Accordingly, the total purchase value of land was Rs. 51,81,000/-. The Assessee enclosed the entire ledger account of land as appearing in its....
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....ent of term loan to Bank of Baroda to the tune of Rs. 1,86,56,555/-, which are tabulated in page 9 of the assessment order. Accordingly, the total repayment of loan made during the year was Rs. 1,89,78,648/-, which was claimed as utilization of funds applied for charitable purposes by the Assessee. The source of making payments for the repayment of term loans were duly drawn from the books of accounts maintained by the Assessee. The Assessee also submitted that the loans originally taken from Bank of Baroda was for construction of engineering college building, purchase of lab equipment and furniture and purpose of vehicle loan from Mahindra and Mahindra is for purchase of bus for transportation of students from their residence to college an....
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....e could not substantiate the repayment of term loan made in the sum of Rs 1,89,78,648/- which was also sought to be treated as unexplained cash credit under section 68 of the Act. 10. The Learned NFAC duly appreciated the contentions of the assessee and deleted the additions made by the Learned AO by observing as under:- "4.3 Ground No. 2 & 3 are related to addition of Rs. 51,51,500/- as unexplained Rs. 51,5 cash credit u/s 68 of the IT Act. The AO only mentioned in the assessment order that the bank account is in the name of "Chaudhary Beeri Singh Inter College, Agra" and the cheque is also issued by the "Chaudhary Beeri Singh Inter College, Agra" but the land purchased is in the name of Shri Chaudhary Beeri Singh Education Soc....