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Sharma & Gangahar Builders & Colonisers Pvt. Ltd. Versus Asst. Commissioner of Income Tax, Circle V, Amritsar

I.T.A. No.474(Asr)/2011 - Dated:- 11-2-2013 - H.S. SIDHU, JUDICIAL MEMBER AND SH. B.P. JAIN, ACCOUNTANT MEMBER. Appellant by: Sh. Padam Bahl, CA Respondent by: Sh. Amrik Chand, DR ORDER PER BENCH ; This appeal of the assessee arises from the order of the ld. CIT(A), Amritsar, dated 22.07.2011 for the assessment year 2005-06. The assessee has raised following grounds of appeal: 1. That worthy CIT(A), Amritsar has grossly erred in confirming an addition of ₹ 3,26,000/- on account of advance .....

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n Kaur W/p Sh. Paramjit Singh, Diamond Avenue, Amritsar u/s 68 of the Act made by ACIT, Circle 5, Amritsar. 4. That worthy CIT(A) has failed to appreciate that a sum of ₹ 1,00,000/- out of ₹ 5,26,000/- was received by the assessee in earlier years and not in A.Y.2005-06. 5. That worthy CIT(A), Amritsar has grossly erred in confirming an addition of ₹ 30,000/- on account of advance given by Sh. Jatinder Pal Singh which was surrendered by assessee in year 2007 during survey proce .....

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r 2007, during survey proceedings made by ACIT Circle 5, Amritsar. 8. That worthy CIT(A), Amritsar has grossly erred in confirming an addition of ₹ 2,00,000/- on account of advance given by Sh. Parshotam Lal S/o Sh. Madho Ram surrendered by the assessee in year, 2007. 9. That worthy CIT(A), Amritsar has failed to appreciate that the surrendered took place in year 2007 and not in A.Y. 2005-06, much before the date of the assessment and was accepted by the department. 10. That the Ld. CIT(A) .....

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34B at ₹ 3,19,.613/- by ACIT, Circle-5, Amritsar. 2. As regards ground No.1, the brief facts as per order of the AO at page 1 & 2 of his order are reproduced for the sake of clarity as under: Sh. Gurcharan Singh S/o Assa Singh R/o Preet Nagar, Amritsar :5,26,000/- He has shown advance given for the purchase of plot of ₹ 5,26,000/- in the year 2004. His statement was recorded. He was asked to explain the source from where the advance was given to M/s. Sharma & Gangahar Builder .....

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chased till the date of recording his statement on 12.12.2007, as he has to pay of ₹ 50,000 as yet and he has also not received back the money given by him as advance to the above company. From the above it is clear that he has no capacity to give the advance and money has also not received back. The amount given advance is not genuine. Keeping in view the facts stated above the amount of ₹ 2 lac appears to be reasonable given as advance and the balance amount shown by the assessee i .....

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of advance given to the assessee as his savings of 20 years and contribution of his sons. The partly acceptance of advance of ₹ 2,00,000/- is legally untenable since the statement of Sh. Gurcharan Singh has to be accepted in toto or to be rejected in toto. 2.3. The Ld. DR, Mr. Amrik Chand, relied upon the orders of both the authorities below. 3. We have heard the rival contentions and perused the facts of the case. There is no dispute to the fact that the cash creditor had been examined b .....

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atement that the said sum of ₹ 5,26,000/- is out of past savings and by his two sons does not prove the creditworthiness of the cash depositor, especially when no evidence with regard to any saving has been brought on record before any of the authorities below. The cash creditor or any of his family member is not maintaining any bank account. The cash creditor or any of his family members especially two sons, as mentioned hereinabove are not assessed to tax go to prove that the cash deposi .....

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o be supplied by 17.12.2007 with regard to the source of the cash creditor and his two sons. The AO in toto rejected the statement of the cash creditor. But, however, Ld. CIT(A) has allowed ₹ 2 lacs as available with the cash creditor. The Department is not in appeal before us, therefore, we confirm the action of the Ld. CIT(A) accordingly. sThus, ground No.1 of the assessee is dismissed. 4. As regards ground No.2, the brief facts as appearing at page 2 of AO s order are reproduced as unde .....

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but the assessee did not file any explanation in this regard. Therefore, the above amount of ₹ 4,00,000/- considered to be of the assessee shown as investment from undisclosed sources of income. The addition of ₹ 4,00,000/- is made to the taxable income on account of unexplained cash credit u/s 68 of the I.T. Act. 5. The Ld. CIT(A) confirmed the action of the Assessing Officer. 6. The Ld. counsel for the assessee, Sh. Padam Bahl, CA, argued that the said amount of ₹ 4 lacs was .....

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d, relied upon the orders of both the authorities below. 8. We have heard the rival contentions and perused the facts of the case. As is evident from the order of the AO at page 2, the cash creditor had been issued summon u/s 131. In response to the same, a letter dated03.08.2007 was sent by the cash creditor to the AO that cash creditor has not purchased any property during the period 01.04.2004 to 31.03.2005. The assessee was required to file explanation but no explanation in this regard was f .....

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ered the income of the impugned year inspite of the fact that the assessee had credited the said ₹ 4 lacs during the assessment year 2009-2010. We find no infirmity in the order of the ld. CIT(A) in this regard. 9. We are convinced with the argument of the ld. counsel for the assessee, Sh. Padam Bahl before the ld. CIT(A) that having credited the said ₹ 4 lacs as income during the assessment year 2009-2010, there will be a double taxation of the same income, which has been taxed duri .....

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4, the brief facts as per order of the A.O. at pages 2 & 3 are reproduced as under: Smt. Gurdarshan Kaur W/o Sh Paramjit Singh, Diamond Avenue, Majitha Road, Amritsar = ₹ 5,26,660/-. Summon u/s 131 was issued to above person to examine the genuineness of advance given by her to the assessee.The notice server of the office has reported that non the given address the above person could not be traced. The assessee company was asked to explain but the assessee did not file any explanation .....

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forward from the earlier year and therefore, cannot be treated as income under section 68 for the assessment year under consideration. In any case, the amount had been forfeited and credited during the assessment year 2009- 2010 and offered as income for which Income tax particulars were placed before the ld. CIT(A). It was argued before the ld. CIT(A) that there cannot be double taxation of the same income i.e. one in the impugned year and other during the assessment year 2009-2010 and therefo .....

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ld be traced on the given address. The assessee-company was asked to submit the explanation in this regard but no explanation was filed before the A.O. A copy of account of the cash creditor submitted at PB-12, for the sake of clarity is reproduced as under: Smt. Gurdasrshan Kaur W/o Paramjit Singh From:01.04.2004 to 31.03.2005 Date Narration Debit Credit Balance Balance B/F 100000.00 100000.00 10/04/2004 By cash Recd. On A/c SGE PH-1 P.No.793, 794, 798 100000.00 200000.00 28/04/2004 By cash Rec .....

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the address of the cash creditor was wrong given to the AO. No correct address had been given even before the ld. CIT(A) or even before us. No confirmation of such person or no explanation in this regard had been placed on record before any of the authorities below or even before us. Therefore, even ₹ 1 lac shown as brought forward cannot be said to be explained. The Ld. counsel has not placed on record any document to prove that the said amount of ₹ 1 lac is actually brought forwar .....

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ash credit of ₹ 5,26,660/- received in cash which has been claimed to have been deposited at ₹ 4,26,660/- in the impugned year and ₹ 1 lac pertaining to the preceding year. In the facts and circumstances and in the absence of any explanation in this regard, the ld. CIT(A) has rightly confirmed the action of the A.O. to treat the same as unexplained. 12. As regards the arguments of the ld. counsel for the assessee before the ld. CIT(A) and before us that there cannot be double t .....

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gned year. The AO in the assessment year 2009-10 may peruse that there is no double taxation, once the income having been taxed on the same amount in the impugned year. In the facts and circumstances, we find no infirmity in the order of the ld. CIT(A), who has rightly confirmed the action of the A.O. Thus, grounds No.3 & 4 of the assessee are dismissed. 13. As regards ground Nos. 5, 6, 7 & 8 of the assessee are concerned, the AO made an addition of ₹ 30,000/-, ₹ 7,00,000/-, .....

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- returned to him on 03.05.2005 and 05.05.2005 by two cheques of ₹ 2,85,000/- each and the balance amount of ₹ 30,000/- was forfeited during the year and the same may be added to the taxable income. Therefore, the addition of ₹ 30,000/- is made to the taxable income on this account. Sh. Jasbir Singh, 2671,Chowk Moni, Amritsar = ₹ 7,00,000/- The assessee stated that the above person has given advance for the purchase of plot of ₹ 7,00,000/- during the year. He has no .....

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₹ 3,00,000/- has been forfeited and the same may be added to the taxable income. Therefore, the addition of ₹ 3,00,000/- is made to the taxable income on this account. Sh. Parshotam Lal S/o Sh. Madho Ram, Village Mohan Bhandarian Ajnala = ₹ 9,00,000/- The assessee stated that the above person has given advance for the purchase of plot of ₹ 9,00,000/- during the year and out of which ₹ 7,00,000/- was repaid in the year 2007 and the balance of ₹ 2,00,000/- has b .....

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of the said cash creditors in the assessment year 2007-08 or 2008-09 i.e. ₹ 30,000/- in respect of Sh. Jatinderpal Singh during the assessment year 2008-09, ₹ 7 lacs relating to Sh. Jasbir Singh during the assessment year 2007-08, ₹ 3 lacs in respect of Smt. Ritu during the assessment year 2008-09 and ₹ 2 lacs relating to Sh. Parshotam Lal during the assessment year 2008-09. Therefore, there cannot be a double taxation of the same amount, one in the impugned year and the .....

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s forfeited at PB-28 in the profit & loss account for the year ending 31st March, 2007 includes ₹ 7,00,000/- in the case of Jasbir Singh. He accordingly prayed to direct deletion of addition in respect of all the four amounts in view of the arguments made before the ld. CIT(A) and before us. 13.3. The Ld. DR, on the other hand, relied upon the orders of the authorities below. 14. We have heard the rival contentions and perused the facts of the case. There is no dispute to the fact that .....

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