Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (7) TMI 353 - ITAT BANGALORE

2015 (7) TMI 353 - ITAT BANGALORE - TMI - On-money payment for purchase of immovable property - CIT(A) deleted surcharge levied u/s 113 on assessee - Held that:- During the course of search, a document was found and seized in which are recorded the transactions of the assessee with Smt.Venkatamma and Smt.Venkatnarasamma for purchase of immovable properties. In this document, the dates of agreement of sale, sale consideration as per the agreement, date of execution of sale deed, amounts paid and .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

statement was recorded by the AO u/s 131 during the assessment proceedings. During the recording of statement u/s 131, Jayaram had stated that there was on-money involved in the transaction. However, in the affidavit filed before the CIT(A), Jayaram has controverted the statement. However, we find that the CIT(A) has not admitted the additional evidence filed by the assessee on the ground that the signature of the deponent did not match. Thus observing, the CIT(A) has rejected the additional evi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t, but not to the contents of the document. Therefore, his statement or the subsequent affidavit have no relevance as regards the consideration by the assessee to his vendors. But the assessee has not produced his vendors, nor has he filed confirmations from them to rebut the findings of the AO that on-money has been paid by the assessee, even in the remand proceedings. Therefore, we see no reason to interfere with the order of the CIT(A).- Decided against assessee. - IT(SS)A No.9/Bang/2014, IT( .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

real estate. There was a search in the premises of the assessee as well as the partners of the assessee on 29/5/2001 u/s 132 of the Income-tax Act, 1961 [hereinafter referred to as 'the Act' for short]. During the search proceedings, certain incriminating documents were found and seized. During the assessment proceedings u/s 143(3) r.w.s.158BC of the Act, the Assessing Officer (AO) made certain additions on account of on-money paid by the assessee for purchase of immovable property. The .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ent u/s 144 of the Act by re-confirming the assessment order passed earlier. 4. Aggrieved, the assessee preferred an appeal before the CIT(A) along with an application to admit the affidavit of one Jayaram as additional evidence in terms of rule 46A. The CIT(A) after considering that the assessee was given ample opportunities by the AO and that the assessee was not cooperating or assisting the AO to complete the assessment and on further examination of the affidavit given by Jayaram, held that t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d deleted the same holding that it is only prospective in nature and cannot be applied in the assessee s case where search was conducted on 29/5/2001. Against the relief given by the CIT(A) against levy of surcharge, the revenue is in appeal before us while against confirmation of the addition on account of on-money allegedly paid by the assessee, the assessee is in appeal before us. 5. As regards the revenue s appeal, the learned counsel for the assessee has drawn our attention to the judgment .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

appeal. 6. As regards the assessee s appeal is concerned, the learned counsel for the assessee has drawn our attention to the document found and seized during the course of search which is at page 70 of the paper book and submitted that the assessee had purchased two properties from two different vendors i.e. Smt.Venkatamma and Smt.Venkatanarasamma who had also executed the registered sale deeds in favour of the assessee. He submitted that the assessee had paid sale consideration as recorded in .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nfirmed the addition ex-parte assessee. He submitted that the assessee had filed additional evidence before the CIT(A) in the form an affidavit of Jayaram who is a signatory to the registered sale deed as attesting witness and had stated that there was no on-money paid by the assessee. He submitted that the CIT(A) has erroneously rejected the additional evidence on the premise that the signature of Jayaram did not match with his signature during the course of recording of statement u/s 131 of th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he stand of the assessee all along that Jayaram was, in no way concerned with the transaction and his statement cannot be relied upon. He submitted that the assessee had himself filed the affidavit of Jayaram before the CIT(A) stating that he was aware of the transaction and that there was no on-money paid for the transaction. He submitted that these averments of Jayaram were contrary to the earlier stand of the assessee. Therefore, according to him, the CIT(A) has rightly rejected the contentio .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

out payment of on-money and it is also not probable that the registered sale deed would have been executed without payment of on-money. Therefore, according to him, the order of the CIT(A) was well reasoned and needs no interference. 8. The learned counsel for the assessee, on the other hand tried to rebut the findings of the CIT(A) and has also placed reliance upon the judgment of the Hon ble Kerala High Court in the case of CIT vs. Smt. K.C.Agnes(262 ITR 354) and the judgment of the Hon ble Su .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rch is not sustainable. 9. Having regard to the rival contentions and the material on record, we find that during the course of search, a document was found and seized in which are recorded the transactions of the assessee with Smt.Venkatamma and Smt.Venkatnarasamma for purchase of immovable properties. In this document, the dates of agreement of sale, sale consideration as per the agreement, date of execution of sale deed, amounts paid and the amounts due to be paid are all recorded. It is also .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

no transactions in real estate without on-money and therefore it was set aside to the file of the AO for the assessee to establish that on-money was not paid. The AO was directed to examine the issue on the basis of preponderance of probabilities after examining the parties to the transaction. The assessee neither appeared before the AO during the remand proceedings nor did he file any evidence in support of his contention that on-money, as recorded in the seized document, was never paid. Even b .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version