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2015 (6) TMI 522 - ITAT HYDERABAD

2015 (6) TMI 522 - ITAT HYDERABAD - TMI - Unexplained investment - CIT(A) deleted the addition relying on additional evidence filed by the assessee in the form of a confirmation letter issued by the partners of M/s. SK Builders - Held that:- A perusal of the copy of the relevant confirmation letter shows that the same does not contain any date. Even the letter stated to be filed by the assessee before the Assessing Officer is also undated and the same does not contain anything to show that the r .....

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e Learned Departmental Representative that the relevant confirmation letter was filed by the assessee for the first time before the learned CIT(A) and the same constituting additional evidence was relied upon by the learned CIT(A) to give relief to the assessee without giving any opportunity to the Assessing Officer to verify the same. There is thus a clear violation of Rule 46A of the Income-tax Rules, 1962 by the CIT(A), and his impugned order is therefore, liable to be set aside. Thus restore .....

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of the learned Commissioner of Income-tax(Appeals) VII, Hyderabad dated 20.2.2014 and the same is being disposed of alongwith the cross objection filed by the assessee, being C.O.No.48/Hyd/2014. 2. The assessee in the present case is an individual. A search and seizure action under S.132 was conducted on his residential premises. Subsequently, a notice under S.153A was issued by the Assessing Officer, in response to which return of income was filed by the assessee declaring total income of S .....

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No.1490/Hyd/2011 restored the issue involved in the appeal of the assessee relating to the investment made in the purchase of land to the Assessing Officer, with a direction to examine as to whether the relevant payments made by the assessee were towards purchase consideration or development charges. 3. As per the directions of the Tribunal, the Assessing Officer issued notice on 1.6.2012 requirimg the assessee to furnish the relevant details alongwith necessary supporting evidence. In reply, t .....

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Shamshabad mandal, R.R. Distt. ii) The sale agreement was later cancelled and sale deeds have been executed in the name of Smt.Vijayalakshmi and Sri G.Veera Sekhar Reddy. The company had categorically contended that the agreement was cancelled and was never acted upon. iii) We further submit that on request of Mr.Jameel Ahmed Khan the partner of SK Builder an amount of ₹ 80,22,500/- was paid in the form of cheques to the partners of SK Bilders and there relatives and the purchase of land w .....

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assessee claimed that these payments were made to the other persons on the request of Shri Jameel Ahmed Khan, partner of S.K. Buidlers, this claim of the assessee was not accepted by the Assessing Officer, in the absence of any documentary evidence to support and substantiate the same. He held that the payments so made to the other persons other than the partners of M/s. SK Builders could not be considered as payments made towards the purchase of plot and accordingly, the amount of ₹ 66,22 .....

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ssessee for the following reasons given in paragraph Nos.6.1 and 6.2 of his impugned order. 6.1 The Vendor M/s. SK Builders and their partner Sri Azeeez Ahmed khan has issued a letter to the AO in response to a notice issued u/s. 131. In this letter, it was clearly stated that the total sale consideration is ₹ 3,37,77,500/-. A confirmation letter was also given in which it was stated as under: CONFIRMATION LETTER We the undersigned partners of SK Builders confirm that we have received an a .....

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hareef 22.11.07 974523 6,22,500 TOTAL 66,22,500 We also confirm that we have admitted the entire sale consideration of ₹ 3,37,77,500/-. 6.2 The Hon'ble ITATs directions were to verify whether the payments were relatable to land or not. From the assessment order it is evident that the Assessing Officer has accepted 14 lakhs and disallowed the balance ₹ 66.22 lakhs only because the payments were made persons other than land owners. From the letter of the vendor it is evident that t .....

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eleting the addition of ₹ 66,22,500/- on the basis of a confirmation letter issued by the partners of M/s. S.K. Builders which constitutes additional evidence and without giving an opportunity to AO to examine the said confirmation letter which is in violation of Rule 46A of IT Rules, 1962. 6. We have heard the arguments of both the sides and also perused the relevant material on record. The only grievance of the Revenue as projected in the solitary substantive ground raised in this appeal .....

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that the said confirmation letter was not filed by the assessee before the Assessing Officer and the same was filed for the first time before the learned CIT(A). He has contended that the learned CIT(A) has given the relief to the assessee by deleting the entire addition of ₹ 66,22,500 made by the Assessing Officer relying on the said confirmation letter, which clearly constituted additional evidence, without giving any opportunity to the Assessing Officer to verify the same. He has conte .....

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ot constitute additional evidence filed by the assessee before the learned CIT(A) for the first time, as alleged by the Learned Departmental Representative. He has invited our attention to the copy of the said confirmation letter placed in paper-book at page No.16 and submitted that the same was filed before the Assessing Officer alongwith a letter, copy of which is placed at page Nos.14 and 15 of the paper-book. 8. After considering the rival submissions and perusing the relevant material on re .....

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