9911796707
TMI Blog2010 (8) TMI 594X X X X Extracts X X X X X X X X Extracts X X X X ..... years, but rejected the evidence on certain doubts, without seeking clarifications thereof. 2. The ld. CIT(A) is not justified in confirming an addition of Rs. 5,50,000 whereas in the hearing held on 24-2-2010, it was stated that the assessee had furnished various documents on 15-12-2008 for genuineness of the advance of Rs. 5,50,000 but the AO made assessment on 23-12-2008 without asking any further evidence and assessee was willing to produce Shri Vimal Sharma for examination, the CIT(A) in the order sheet entry had observed that the matter is being remanded to the AO and appeal would be refixed thereafter." 2. The facts narrated in the assessment order are that search and seizure operations were carried out in group cases of Capital Meter and Neesu Constructions (P.) Ltd. The assessee is a director in Neesu Constructions (P.) Ltd., who was also searched. Thereafter, a notice u/s 153A of the Income-tax Act, 1961, was issued on 10-9-2008, in response to which the return of income was filed on 20-10-2008, declaring total income of Rs. 76,100. Assessment proceedings were initiated by service of a notice u/s 143(2) and the questionnaire dated 22.10.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Shri Anand Sarup (father of Shri Vimal Sharma) and note from Shri Vimal Sharma about his sources of income, he is able to establish that the family of Shri Vimal Sharma is having financial capacity to buy the land and make the payment of Rs. 8,25,000 in two years. They do not establish anything more than this. (c) But the most important documents are the so-called agreement to sale and the confirmation of payment of cash by Shri Vimal Sharma. I would like to make following observations about this so-called agreement to sale : (i) This agreement is not signed on a stamp paper. It is written on a plain paper. Thus, prima facie this agreement has no evidentiary value. (ii) There are no witnesses to this agreement and there is no date mentioned also in this so-called agreement except mentioning therein that on 10-7-2002 payment of Rs. 5,50,000 has been made by Shri Vimal Sharma. (iii) It is claimed in this agreement that Shri Neeraj Sharma i.e., the appellant is having a general power of attorney to sell this land but no such power of attorney has been enclosed/furnished. (iv) The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 5.50 lakh have been received on 10-7-2002; (iii) Rs. 2,75,000 will be paid in April-May, 2003; (iv) the balance amount shall be paid at the time of execution of sale deed; (v) the buyer is given time up to 10-7-2003 for executing the sale deed; and (vi) in case of failure to pay the balance amount and get the sale deed executed within time, the aforesaid advances shall be forfeited. This agreement is written on a plain piece of paper and it has been witnessed by two persons, whose addresses are not furnished. The agreement has also not been dated. Thereafter, he drew our attention to page 4 of the paper book being confirmation from Shri Vimal Sharma, written in English, stating that he has given Rs. 8.25 lakh in cash to Shri Neeraj Sharma for purchase of land, the sale is yet to be registered and that he belongs to agricultural background, having income from agricultural sources and not assessed to tax. This confirmation has also not been dated. Our attention was further drawn to page No. 18 of the paper book, being submissions dated 24-2-2010 filed before the ld. CIT(Appeals), In paragraph No. 4, in the copy maintained by the counsel of the assessee appearing before him, it h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f credit remains unexplained on a prima facie basis. Therefore, it was argued that the orders of the lower authorities may be confirmed in the matter. 3.2 In the rejoinder, it has been submitted that the documents had been furnished even before the AO, Therefore, the conclusion drawn are inferential in nature. Thus, it was argued that the matter may be restored to the file of the AO or the ld. CIT(A) so that the matter may be examined afresh enabling the assessee to establish the authenticity of the agreement. 4. We have considered the facts of the case and submissions made before us. The facts are that the assessee had credited a sum of Rs. 5,50 lakh in the capital account on or about 10-7-2002. In support thereof, an agreement to sell and a confirmation letter have been filed. Both these documents are undated. The contents of the confirmation are not fully in harmony with the agreement to sell. It is mentioned that he has given Rs. 8.25 lakh in cash to Shri Neeraj Sharma for purchase of land at village Katyavali. The land is yet to be registered in his name. The source of money is agricultural income. This confirmation does not contain detailed facts about purchase of land, par ..... X X X X Extracts X X X X X X X X Extracts X X X X
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