9911796707
TMI Blog2012 (7) TMI 308X X X X Extracts X X X X X X X X Extracts X X X X ..... with search & seizure operations carried out u/s 132 of the I.T. Act at the residence of the assessee on 15-2-2008 and are heard together and disposed of by a consolidated order for the sake of convenience. 2. Effective grounds raised by the assessee are as under: A.Y. 2004-05: (1) Sustenance of addition of Rs. 15 lacs u/s 68 of the I.T. Act. A.Y. 2005-06: (1) Sustenance of addition of Rs. 35,25,645/-, treating the same as assessee's income from other sources as against long term capital claimed by the assessee. A.Y. 2008-09: (1) Sustenance of addition of Rs. 4,02,535/- as deemed dividend u/s 2(22)(e) of the I.T. Act. 3. In revenue's appeals, one common ground raised by the revenue for A.Y. 2002-03, 04-05, 05-06 & 2006-07 is assail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income from other sources in corresponding years. Various notices were issued calling on the assessee to attend the proceedings, according to Assessing Officer assessee partially complied with notices. 4.1. The assessee had taken various loans from ATS in which had more than 10% of share holding/ voting powers and provisions of sec. 2(22)(e) were clearly attracted against these loans. The assessee was issued show cause notice as to why these advances should not be treated as deemed dividend u/s 2(22)(e). Assessee explained that ATS had entered into an agreement for purchase of the property belonging to assessee situated at C- 226, Sector 44, Noida and these amounts were given by ATS to assessee by way of advance for sale of land. The deal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n A.Y. 2007- 08 and 2008-09 by mistake this ground has not been taken by the revenue, the fact remains that CIT(A) admitted the additional evidence on a finding about lack of sufficient opportunity, which is not borne out from the record. 4.5. The gifts are made with person to near and dear and on the basis of proper documentations. In this case these documents were not produced before Assessing Officer . Similarly, assessee's father expired much earlier and the assumption arises that assessee himself was a legal heir, therefore, non-production of supporting documents about cash credits can be attributed only to assessee. 4.6. Similarly, the transactions in respect of advances received from ATS have been held to be business transaction by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of assessment order is given in attachment filed herewith for your kind perusal. It would be seen that the Assessing Officer has passed order u/s 143(3) without affording reasonable opportunity of being heard to the appellant. In fact on 14-12-2009 the appellant moved a written petition asking for more time to adduce evidence and explain the case to the learned Assessing Officer . However, for reasons best known to the learned AO no such opportunity was given and all the group cases were disposed off." 5.1. Thus the assessee has clearly raised these facts before CIT(A) and taking note of that the CIT(A) has admitted the additional evidence. Besides, the insufficiency of time was communicated to Assessing Officer vide letter dated 14-12-200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee should have filed application for admission of additional evidence. Thus, this technical infirmity remains on record. (iv) The CIT(A) shall call for the assessment record to decide the issue. 6.1. Besides on the issue of addition of deemed dividend the AO has challenged the MOU executed between ATS and the assessee, managing director as a cover up to explain the advances by following observations: "The assessee's reply has been considered carefully but was found to be unconvincing and devoid of legal merits as from the perusal of copy of MOU filed (without any stamp by the notary), it is noticed that the sale deed was not executed in respect of this claimed land transaction and before executing this sale deed amount of Rs. 65 l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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