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2019 (7) TMI 1773 - AT - Income TaxAdditions towards cash payment u/s 69A for purchase of flats - assessee has failed to bring on record the source of cash of ₹ 1 crore paid to the M/s Nish Developers P. Ltd. - CIT(A) granting relief with regards to the additions made in the hands of third party - CIT(A) after considering relevant submissions of the assessee and also taken into account additional evidence filed by the assessee came to the conclusion that when the person who gave statement u/s 132(4), retracted from his admission by filing a sworn affidavit, the AO was erred in reaching to the conclusion that the assessee has paid cash for booking flat - HELD THAT:- AO has relied upon information received from DDIT (Inv.) as per which the CEO and trusted employee of M/s Nish Developers P.Ltd., in the statement recorded during search proceedings have admitted the fact of receiving cash for booking of flats. Except this, the AO has not carried out any independent enquiry to find out the truth in light of statement recorded from CEO of M/s. Nish Developers P.Ltd. towards cash payment made for bookings flats. The assessee has also filed copy of purchase deed which was executed on 24/12/2013 and market value of the said flat has been determined by the Registrar at ₹ 2,72,20,000/- for the purpose of stamp duty. When the market value of the flat which was agreed to be purchased in 2010 for a purchase of price ₹ 2, 75,00,000/- is determined after more than three years by the Sub Registrar at ₹ 2,72,20,000/-, there is no reason for the AO to make additions towards alleged cash payment only on the basis statement of some persons, more particularly when the persons who gave such statements have been subsequently retracted statement by filing a sworn affidavit. The Ld. CIT(A) after considering relevant facts and also by following the decision of Hon’ble Supreme Court in the case of Shri. Kishanchand Chellaram [1980 (9) TMI 3 - SUPREME COURT] held that the AO has made additions without conducting any independent enquiry and solely on the basis of information received from DDIT (Inv.) without there being any further evidences to support his findings that a sum of ₹ 100 Lacs alleged to have been paid in cash by the assessee. We do not find any error in the findings of CIT(A) - Decided against revenue.
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