Case Law Details
Lakhmi Chand Tejoo Mal Vs ACIT (ITAT Delhi)
Applying Deemed Dividend Without Disputing Purpose Of Transaction In Violation To CBDT Circular No. 19/2017 Is Invalid.
GIST
1. We have carefully considered the orders of the authorities below and the relevant documents brought to our notice. The undisputed fact is that vide agreement to sell dated 16.5.2003, entered into between the assessee and the company Brahmand System Private Limited, the assessee agreed to sell the property situated at Haryana to the said company and the sale consideration was fixed at a sum of Rs.98 lakhs out of which Brahmand System Private Limited advance Rs.78 lakhs as earnest money and part payment. There is no dispute in so far as this agreement is concerned.
2. The observation of the Assessing Officer that the purpose of the advance or loan is immaterial is contrary to the CBDT Circular No. 19/2017 dated 12.06.2017, which is as under:
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