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TMI Blog2017 (10) TMI 1147X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 1961, with a direction: (i). To verify the source of investment in acquisition of plot no. 21, admeasuring 1919.37 sq. mtrs at Pune, inspite of the fact that the investment by way of payment to vendors for the said plot was made in F.Y. 2008-09 and not in the previous year relevant to A.Y. 2012-13 and the source for such investment beyond doubt and (ii). To verify the applicability of section 50C in the hands of the seller for which the assessment of the assessee could not be set aside. 3. The appellant craves leave to add, alter, amend and/or vary the grounds of appeal at any time before the decision of the appeal." 2. Briefly stated, the facts of the case are that the assessee had efiled his 'return of income' for A.Y. 2012-13 on 30.07.2012, declaring total income of Rs. 4,78,450/-. The 'return of income' of the assessee was processed as such under Sec. 143(1) of the 'Act'. That on the basis of 'AIR' information that the assessee had during the year under consideration purchased certain Immovable property for a consideration of Rs. 5,00,00,000/-, the case of the assessee was taken up for scrutiny assessment. The A.O vide his order passed under Sec. 143(3), dated. 30 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15, was erroneous and prejudicial to the interest of the revenue, therefore, called upon the assessee to show cause as to why the said order may not be revised under Sec. 263 of the 'Act'. 4. The assessee in his reply submitted before the Pr. CIT that he had made a payment of the purchase consideration of Rs. 5 Crore to the seller of the aforesaid property, viz. Sh. Avinash N. Bhosale & Mrs. Gauri A. Bhosale on 21.08.2008, the source of which was a loan raised by him from his client, i.e M/s Kalpavruksha Plantation Pvt. Ltd. It was submitted by the assessee that because of certain reasons the agreement could not be executed and registered during the said year, therefore, the amount paid to the seller of the property, viz. Sh. Avinash N. Bhosale & Mrs. Gauri A. Bhosale was shown as an advance, while for the loan raised from M/s Kalpavruksha Plantation Pvt. Ltd. was reflected as an unsecured loan in the 'balance sheets' of the assessee for the A.Y 2009-10 till 2011-12. The assessee further submitted before the CIT that as the lendor, viz. M/s Kalpavruksha Plantation Pvt. Ltd. was pressing hard for the repayment of the loan, therefore, the assessee had raised a loan of Rs. 5 Crore fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of mind in respect of the source of the investment in purchase of the property, had accepted the same. The ld. A.R submitted that the copy of the 'Agreement' dated. 18.11.2011 was furnished with the A.O, wherein the fact that the payment of the purchase consideration for the property was made by the assessee on 21.08.2008 was clearly mentioned. The ld. A.R in order to fortify his aforesaid contention took us through the relevant extract of the 'Agreement' (Page 42) of the 'Paper book' ('APB'). That in the backdrop of the aforesaid factual matrix, it was submitted by the ld. A.R that now when it remained as a matter of fact that the assessee had paid the purchase consideration on 21.08.2008, i.e the period relevant to A.Y. 2009-10, therefore, the CIT could not have held the assessment framed by the A.O for A.Y. 2012-13 as "erroneous". The ld. A.R further took us through the 'Balance sheet' of the assessee for A.Y. 2009-10 (Page 59 of 'APB'), wherein the amount paid by the assessee to the seller of the property stood reflected as an advance under the head "Bungalow-JIAI-Advance for property: Rs. 5,00,00,000/-", while for a corresponding liability for the same amount was shown agai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion u/s 263 and revised the order passed by the A.O u/s 143(3), dated. 30.03.2015. 8. We have heard the authorised representatives for both the parties, perused the orders of the lower authorities and the material available on record. We have given a thoughtful consideration to the facts of the case and find that though the case of the assessee was selected for scrutiny assessment on the basis of the AIR information that an investment of Rs. 5 Crore was made by the assessee for purchase of an immovable property during the year under consideration, however, the A.O while framing the assessment failed to make necessary verifications on the said material aspect itself. We find that the Pr.CIT while deliberating on the case records observed that the assessee on being called upon by the A.O to furnish the source of investment in the aforesaid property had submitted that the same was made from the unsecured loan of Rs. 5 Crore raised from his mother Mrs. Suneeta Pawar. However, the Pr. CIT on perusal of the details and the bank statement, therein gathered that the loan of Rs. 5,00,00,000/- raised by the assessee from his mother Mrs. Suneeta Pawar on 14.05.2011 was paid to M/s Kalpavrik ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the investment made by the assessee for purchase of the property was not from the loan raised from the assessees mother Mrs. Suneeta Pawar, as had been canvassed before him during the course of the assessment proceedings. We further find from a perusal of the 'Order sheet' of the assessment record that contrary to the claim of the ld. A.R that necessary verifications were made by the A.O during the course of the assessment proceedings, no such fact emerges from the record. However, the fact as it so remains is that the A.O merely placed on record the documents furnished by the assessee and did not make any verifications by deliberating on the same. We are of the firm conviction that from the withholding by the assessee of the actual source of the investment, viz. loan raised by him on 21.08.2008 from his client, i.e M/s Kalpavruksha Plantation Pvt. Ltd., during the course of the assessment proceedings, it can safely be inferred that the same had been so done with a purpose of avoiding verification of certain issues which would had a strong bearing on the income of the assessee. We are of the considered view that the acceptance of the claim of the assessee by the A.O without making ..... X X X X Extracts X X X X X X X X Extracts X X X X
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