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2023 (1) TMI 360 - ITAT DELHIReopening of assessment - Cash receipt against booking of flats - cash receipt will be subject to tax - unaccounted income of the company for its Nehru Vikas Minar Project - AO made the impugned addition relying only on the provisions of sub-section (4A) of section 132 - HELD THAT:- As observed that the company has denied the alleged cash receipt by it from the parties mentioned in xls sheet. AO made the impugned addition relying only on the provisions of sub-section (4A) of section 132 completely overlooking the fact that the presumption under section 132(4A) is rebuttable and where there is denial of such presumption, onus shifts to the Ld. AO to make further investigation which has not been done. No attempt has been made by the AO to examine the said parties to establish the veracity of the entries made in the xls sheet when their complete addresses have been mentioned therein. The records do not reveal that during re-assessment proceedings the assessee was confronted with the case of Shri I.E. Soomar in which on similar set of facts and circumstances, taxes have been paid on such cash investments. Record of the assessee needs to be examined as to whether in its case Percentage Completion Method (PCM) has been applied or assessment has been made on the basis of Project Completion Method. We are, therefore, of the view that it would be appropriate if the issue of the impugned addition is restored back to the file of the Ld. AO to carry out necessary investigation as to the receipt of the alleged cash by the assessee and arrive at the conclusion afresh in the light of the material gathered. Accordingly, we set aside the order of the Ld.CIT(A) on this issue and direct the Ld. AO to make reassessment afresh keeping in view the above directions. Appeal of the Revenue is treated as allowed for statistical purposes. Validity of the reassessment - It is observed that the CIT(A) has held that the reopening of the assessment is valid in the eyes of law for the reasons recorded in this behalf. We agree and reject this ground. Appeal of the assessee is dismissed.
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