TMI Blog2020 (3) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... eliance Estate Agency. The case set up was that apart from the amount mentioned in the registered sale deeds or the payment received by cheques, there were certain cash transactions which were divided between the assessee and the Managing Director of the seller-company. Without having any quarrel with the issue that there may be a possibility that the assessee could apart from commission earn profit in a sale-purchase transaction but the basic issue would be that some cash amount would have been paid by the purchaser. The addition on said account made on the buyer never withstood the scrutiny in appeal. There is nothing on record to show that any addition was made in hand of the seller or the Managing Director of the seller-company for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the ITAT has fallen in error in sustaining the additions made by the A.O. and CIT (A) on the basis of loose papers which were even not being the documents within the meaning of Section 32 of Indian Evidence Act, 1972? (iii) Whether in the facts and circumstances of the case, the ITAT has failed to consider the fact that the Ld. A. O. had made the additions on the basis of calculations taken from loose documents found during search in which the Appellant was even not mentioned as a buyer or seller, which is totally perverse as and when the seller was M/s Indo American Electricals Ltd., and the purchaser was Shri G. L. Verma, then where is the occasion for the assessee/appellant to show any profit or loss arising from these transactio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r'). Manmohan Singh was the Managing Director of the company. It was noted that M/s Reliance Estate Agency was appointed by the seller to advertise and procure bids for sale of the land. M/s TML Investments (P) Ltd. showed interest but the deal did not mature, thereafter plots were subsequently sold. The Assessing Officer came to the conclusion that actual sale consideration of 16 plots tabulated in the assessment order was much more than the figures shown in the registered sale-deeds. The Assessing Officer relying upon the loose sheet seized, mentioning the amount received in cash and cheques calculated the profit and divided the same in half vis-a-vis the assessee and Manmohan Singh, Managing Director of the seller-company. The assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deleted only on technical ground. The reason recorded is against record and not plausible. The relevant portion of the order of the Tribunal in the case of ITA No. 4802/Del/2009-- ITO v. M/s Dua Auto Components P. Ltd., which was followed in cases of other buyers, like ITA No. 3532/Del/2008-M/s Flowmore Anti Counterfeit Security System P. Ltd. v. Income Tax Officer, ITA No. 3514/Del/2010 -DCIT, Circle 11(1) v. M/s Indication Instruments Ltd. etc. is reproduced below: 6.1 We find that the Assessing Officer has not brought even a single word regarding the nature of document and how he has concluded that they belong to the assessee's and on money transaction has been taken place. He has simply relied upon the reasons recorded without ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the seller. There is also no statement of the seller on record that he has obtained on money. Under the circumstances, the additions made in this regard is not sustainable. 6.3 In this regard, we place reliance upon the Hon'ble Apex Court in the case of K. P. Varghese Vs. Income Tax Officer, Ernakulam and Another 131 ITR 597 (SC), wherein it has been held that the burden of proving is that of Revenue when there is allegation of understatement on concealment in the consideration shown. 6.4 We also place reliance upon the judgement of the Hon'ble Apex Court in the case of C.I.T. vs. P. V. Kalyanasundaram in (2007) 294 ITR 49 (SC) in which allegations of on money transaction on the basis of non-convincing loose sheets fou ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
