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2015 (4) TMI 717 - ITAT AMRITSARInvoking the provisions of section 153C/153A - Held that:- During the search and seizure operations on one Sh. Vipin Verma, certain incriminating evidence in the form of an agreement were found, which were forwarded to the Assessing Officer of the assessee and on the basis of the same, notice under section 132A was issued and assessment was completed. We find no infirmity in the order of the Assessing Officer in invoking the provisions of section 153C/153A of the Income-tax Act, 1961 - Decided against assessee. Unaccounted cash - addition of ₹ 70 lakhs and enhancement of ₹ 8,60,000 of addition made on the assessee on the basis of one agreement, which is placed at paper books 12 to 15, which was seized from the premises of Sh. Vipin Verma - Held that:- The agreement is unsigned by the party, M/s. Splender Land Base Ltd. cannot be disputed that the assessee is acting as a commission agent, which has been admitted and accepted by the learned Commissioner of Income-tax (Appeals), who has computed the commission income at 2 per cent. of ₹ 4.30 crores received by the assessee on behalf of M/s. Splender Land Base Ltd., as per agreement seized during the search and seizure operations at the premises of Sh.Vipin Verma of Delhi. Out of the same agreement, the assessee had received cash of ₹ 70 lakhs, which the assessee claimed that the same has not been received and M/s. Splender Land Base Ltd. has also stated that the said cash has also not been paid. Therefore, on the basis of assumption and presumption, the learned Commissioner of Income-tax (Appeals) cannot come to the conclusion that the said cash has actually been received by the assessee. If the said cash has been received by the assessee then the said cash has been received for and on behalf of M/s. Splender Land Base Ltd. and the same has been paid to the farmers and such receipt can be treated as capital receipt and only a commission income at 2 percent can be added as income in the hands of the assessee, though the said amount of ₹ 70 lakhs have been added in the income of M/s. Splender Landbase Ltd. Therefore, there cannot be double taxation in the hands of the assessee unless proper agreement has been executed. The half-baked agreement cannot be a basis for addition of income. Commissioner of Income-tax (Appeals) is not justified in confirming the addition of ₹ 70 lakhs and enhancing the commission at ₹ 8,60,000. - Decided in favour of assessee.
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