TMI Blog2016 (5) TMI 847X X X X Extracts X X X X X X X X Extracts X X X X ..... he authorities below. Since, there is no sale of any capital asset, there is no question of allowing deduction u/s. 54B of the Act to the assessee. - Decided against assesseegr33222112 Addition u/s 68 - Held that:- The assessee has not been able to explain the amount. Neither the assessee was able to prove the identity of the creditors/lenders nor their creditworthiness. The onus was on the assessee to prove the genuineness, identity and the creditworthiness of the transactions and the creditors. Except for furnishing the name and address of the persons no further details were given by assessee. Thus, the assessee was not able to discharge his onus. The ld. Counsel for the assessee has not been able to controvert the well reasoned and de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ings. The assessee is having partnership firms in the name of M/s. Goel Roadlines and M/s. Akash Warehouse Corporation. A survey u/s. 133A of the Income Tax Act, 1961 (hereinafter referred to as the Act ) was conducted at the business premises of the assessee on 09-03- 2011. During the course of survey certain documents relating to purchase and sale of land in the financial years 2005-06 and 2007-08 were impounded. On scrutiny of the sale deeds it transpired that the assessee has earned profit of ₹ 1,15,00,000/- in the period relevant to the assessment year 2008-09. The assessee admitted that the said profit was earned on the transactions with M/s. MTC Business Pvt. Ltd. from sale of land and was not offered to tax in the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... does not fall within the meaning of capital asset the assessee was not liable for any capital gains on the sale of aforesaid land. The authorities below have erred in coming to the conclusion that the assessee is engaged in the business of sale and purchase of land. The assessee during the course of survey had never admitted that he was carrying land trading activity. Moreover, the assessee has utilized own funds for the purchase of agricultural land. The ld. Counsel for the assessee mad an alternate submission that even if it is presumed that the land sold by the assessee during the financial year 2007-08 was capital asset within the meaning of section 2(14) of the Act, the assessee has invested the sale proceeds from the said land for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 121 of the paper book. The ld. DR particularly referred to Q. Nos. 11 and 13 where the assessee has admitted to the sale transactions of land in the period relevant to the assessment years 2010-11 and 2011-12. The ld. DR submitted that a perusal of the statements and corroborative documents on record clearly shows that the assessee was regularly engaged in the business of sale and purchase of land. The ld. DR vehemently defended the findings of Commissioner of Income Tax (Appeals) and prayed for dismissing the appeal of the assessee. 6. We have heard the submissions made by the representatives of rival sides and have examined the orders of the authorities below. We have also examined the documents placed on record in the form of paper boo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... statement recorded on 10-03-2011 i.e. Q. No. 4 and answer is reproduced here-inunder: Question 4: Please go through the bundle no. 2 pages no. 92 to 26. Please explain these papers. Answer: These are the purchase and sale deeds which are related to F.Y. 2005-06 and 2007-08. The profits on the same transactions with the MTC Business Pvt. Ltd. had not offered by me for the A.Y. 2008-09, but the transaction is shown in the balance sheet of the F.Y. 2007-08. 7. A further perusal of the statements recorded on 10-03-2011 and on 09-03-2011 (Q. Nos. 11, 13, and 15) and the material seized it is evident that the assessee was engaged in the regular business of sale and purchase of land and land development. Thus, the contentions o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actions and the creditors. Except for furnishing the name and address of the persons no further details were given by assessee. Thus, the assessee was not able to discharge his onus. 9. The ld. Counsel for the assessee has not been able to controvert the well reasoned and detailed findings of the Commissioner of Income Tax (Appeals) in rejecting the claim of the assessee. Even before us, the ld. Counsel has not been able to substantiate his claim from the documents on record. We do not find any infirmity in the impugned order. Accordingly, the appeal of the assessee is dismissed and the impugned order is upheld. 10. In the result, the appeal of the assessee is dismissed. Order pronounced on Monday, the 11th day of April, 2016. - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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