TMI Blog2014 (4) TMI 961X X X X Extracts X X X X X X X X Extracts X X X X ..... was notarized and was on stamp paper, showed that the assessee had been paid Rs.10 lac and Rs.5lac by cheque on 6/7/2007 & 7/1/08 - The assessee was found to have received cash of Rs.20,50,000/- through Shri Diwan Singh, father of Shri Surender Singh Grover, partner of M/s Grover Developers - The cash flow statement showed withdrawal of cash of Rs.14 lacs on various dates and re-deposit of Rs.10 lacs - the deposits in the bank tallied with the cash advance received by the assessee from the buyers - after having duly taken into consideration CIT(A) deleted the addition - revenue has not been able to dispute the categorical findings of fact recorded by the CIT(A) – Decided against Revenue. Disallowance of deduction u/s 80C of the Act – He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... selected for scrutiny by issue of notice u/s 143(2) dated 4/8/2009. The assessee failed to comply with the said notice and with subsequent notices issued u/s 143(2) and 142(1). The Assessing Officer proceeded to frame the assessment u/s 144 on the basis of the material on record. The Assessing Officer had received AIR information that the assessee had deposited cash amounting to Rs.30,49,000/- in his savings account with Axis Bank. In the absence of any explanation regarding the sources thereof, the Assessing Officer treated the sum of Rs.30,49,000/- as unexplained cash credits u/s 68. The Assessing Officer further disallowed the claim of deduction under Chapter VIA of the I. T. Act amounting to Rs.1,00,000/-, as the assessee had failed to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... siding at the given address, or at the old address, i.e, 204, Ansal Tower, 38, Nehru Place, New Delhi, 110019, at which address, the assessment order was passed; that the assessee came to know about the ex-parte assessment and its proceedings after more than two months, i.e, in the month of March, 2011, when the bank account of the assessee was attached and the amount of Rs.8,89,400/-, being the balance in the said band account, was realized against the demand created by the assessment order; that it was at such that the assessee did not get any opportunity to file explanation and lead evidence with regard to the alleged cash deposits in the bank account and to support the deduction of Rs.1 lac claimed u/s 80C of the Act; and that therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see filed photocopy of the relevant bank statement along with explanation, as follows:- 8. Considering that the notices Under Sections 143(2) 142(1) of the Act were never received by the assessee and also taking into consideration the material relevance of the additional evidence filed by the assessee, the Ld. CIT(A) forwarded the said evidence to the AO, asking for a remand report and requiring the AO to correlate the dates of deposits of cash in the bank account with the dates of receipt of cash as per the sale agreement stipulated by the assessee. The AO, vide his remand report dated 7/1/2013, vehemently objected to the admission of the additional evidence, stating that the notices had been sent to the assessee at the address p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rover was wife of Shri Surender Singh; that in this certificate, both Surender Singh Grover and Jaswinder Kaur Grover, partners of Grower Developers, had confirmed that they had paid cash advance of Rs.20,50,000/- to the assessee through Shri Diwan Singh in F.Y 2007-08; that this certificate had been duly executed by both of them before a notary; that the cash receipts in question had been duly adjusted in the consideration mentioned in the agreements; that the AO had failed to appreciate these facts and the genuineness of the source of the bank deposits; and that since the AO had not commented thereon, he had accepted the facts regarding the redeposit of cash of Rs.10 lacs against cash withdrawals. The Ld. CIT(A), taking all the above fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri Surender Singh Grover, partner of M/s Grover Developers. The cash flow statement showed withdrawal of cash of Rs.14 lacs on various dates and re-deposit of Rs.10 lacs. As per the cash flow statement, the deposits in the bank tallied with the cash advance received by the assessee from the buyers. 11. It was after having duly taken into consideration all the above, that the Ld. CIT(A) deleted the addition. Before us, the Department has not been able to dispute the categorical findings of fact recorded by the Ld. CIT(A). Accordingly, we uphold these factual findings. Therefore, Ground No. 2 is rejected. 12. Concerning Ground No. 3, the AO disallowed the assessee s claim of deduction under chapter VI A of the Act, amounting to Rs.1 l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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