TMI Blog2020 (5) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... and Regal Samarth Krishna Builders in which appellant-assessee had interest as partner therein. Thus, in the present case, Section 153A of the Act was attracted and accordingly, assessment under Section 153A read with Section 143(3) of the Act had been framed. Since the search had taken place at the residence of the assessee as well, thus, no proceedings for framing assessment under Section 153C of the Act arose. Therefore, Section 153C of the Act had no relevancy in the facts and circumstances of the present case.Consequently, it is concluded that the question No.(ii) as claimed, is misconceived. Appeal dismissed. - ITA No. 7/2020 - - - Dated:- 4-3-2020 - Hon ble Shri Justice Ajay Kumar Mittal, Chief Justice And Hon ble Shri Justice Vijay Kumar Shukla, Judge For the Appellant : Shri G.N. Purohit, Senior Advocate with Shri Rahul Deshmukh, Advocate For the Respondent : Shri Sanjay Lal, Advocate JUDGMENT (Oral) PER: AJAY KUMAR MITTAL, CHIEF JUSTICE: This appeal under Section 260A of the Income Tax Act, 1961 (for short the Act ) has been preferred by the assessee against the order dated 13.09.2019 passed by the Income Tax Appellate Tribunal, Indore Be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... velopers Pvt. Ltd. The Department, thereafter, issued a notice to the assessee under Section 153A of the Act. In response, the appellant submitted his return (Annexure A-1) for the block period including the return for assessment year 2013-14. Thereafter, the Assessing Officer issued a notice dated 25.08.2016 (Annexure A-2) under Section 142(1) of the Act. The appellant submitted reply to the said notice on 06.09.2016 and 07.10.2016 vide Annexure A-3. The Assessing Officer vide order dated 30.11.2016 (Annexure A-4) framed assessment under Section 153A read with 143(3) of the Act and made an addition of ₹ 87,60,000/-. Feeling dissatisfied with the order, the appellant preferred an appeal before the CIT(A), which was dismissed vide order dated 26.11.2018 (Annexure A-6). On appeal being preferred by the appellant against the order of the CIT(A), the Tribunal held that only the addition of ₹ 22,40,000/-, which was found to be unaccounted investment, was to be sustained and thus, the appeal was allowed to that extent. In this manner, the present appeal has been filed by the appellant-assessee. 4. Learned counsel for the appellant submitted that the alleged loose pap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns No.(i) and (iii) being interconnected, are taken up together for discussion. It may be noticed that search and seizure operations under Section 132(1) of the Act were carried out in the residential and business premises of the main persons/partners and associated Concerns of M/s Regal Homes and M/s Dwarkadheesh Haveli Builders Group of Bhopal on 12.08.2014. They are collectively referred to as Regal Homes Group . It is promoted by Shri Krishan Lal Sharma (Shri K.L. Sharma). The group is engaged in the real estate sector. Some of the other partners of Regal Homes Group namely, Shri Suresh Kumar Maheshwari and Smt. Sunita Maheshwari; Shri S.S. Yadav and Shri Rajeev Majumdar appellant-assessee were also covered in the search operations. The assessee being member of Regal Homes Group is one of the partner of M/s Regal Samarth Krishna Builders, M/s Regal Samarth Construction Company and M/s Regal Samarth Infrastructure Company. The search and seizure was carried out in the premises of the appellant-assessee in pursuance of warrant of authorization under Section 132 of the Act issued by the Director of Income Tax (Investigation) Bhopal for A-44, Aakriti Garden, Nehru Nagar, Bhopal. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re also exactly matching with the registry made for purchase of land from the Tanwani family. iii) The details contained in these papers are very much systematic and contain total land cost along with percentage and amount of share of each partner. The amounts received from each partner till that date in cash and cheque and the amount due from them are also mentioned. iv) Shri K.L. Sharma was also one of the partners in the firm M/s Regal Samarth Krishna Builders and thus the pages 1 to 8 of LPS-1 also contained details of amounts paid/contributed in cash and cheque by Shri K.L. Sharma. During the course of search at his office premises, Shri K.L. Sharma was confronted with these papers. In response, Shri K.L. Sharma stated that these pages are related to his firm M/s Regal Samarth Krishna Builders in which the project Triveni Heights was launched and for which the land was purchased from Tanwani family. The entries in these papers are the complete details of land purchased. He further submitted that according to page no.8 of LPS-I, the total cost of the land is ₹ 8,18,48,270/-. He stated that as his shareholding in the firm was of 30%, hence, the payable amount from hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... :- 4.2 Ground No.2 for AY 2013-14:- Through this ground of appeal appellant has challenged addition of ₹ 87,60,000/- on account of unaccounted investment. During the course of survey at office premises of M/s Envo Promoters Developers Pvt. Ltd. at 6/4 Chittor Complex, MP Nagar, Bhopal page no.1 to 8 of LPI-I was impounded. These pages contain detailed working of project Triveni heights of M/s Regal Samarth Krishan Builders. The seized paper contains details of land purchased and payments made to various individuals. On page 4 of LPI-I it has been mentioned under main heading Shri Rajeev Majumdar and ₹ 85,00,000/- is to be taken from Chitrakoot. It is important to note that project Chitrakoot is run by M/s Regal Samarth Construction Company and the appellant is one of the partner of M/s Regal Samarth Construction Company. Appellant during appellant proceedings, submitted that loose paper seized LPI-4 shows that someone is suppose to receive ₹ 85,00,000/- from chitrakoot and not by the assessee. Since the assessee is one of the working partner in M/s Regal Samarth Construction Company, therefore, he cannot deny the fact that there exists a nexus between the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n and it is also written ₹ 22,40,000/- balance to be taken . On the basis of these loose papers, which contained the name of the assessee, the addition of ₹ 87,60,000/- was made. It was further found that the assessee had entered into partnership in Regal Samarth Construction Company, which was running its business of construction of flats in the name and style as Chitrakoot . He was also one of the partner in the Firm Regal Samarth Krishna Builders as on 20.10.2011, which was running a project in the name of Triveni Heights . The capital account produced by the assessee in those two partnership Firms, which carried the entry of capital of ₹ 30,00,000/- each, were also corroborated and on that basis the Tribunal gave the benefit of doubt to the assessee by holding that out of the total amount of ₹ 85,00,000/-, the amount of ₹ 60,00,000/- which was appearing in the seized material, stood duly explained with the capital accounts of the partnership Firms, namely, Regal Samarth Construction Company and Regal Samarth Krishna Builders and further the remaining amount of ₹ 2,60,000/-, which was paid through cheque, also stood duly explained and since ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... office of Envo Promoters Development Pvt. Ltd appearing bearing No. LPS-1 page 1 to 8 contained the accounts of various group concerns and partners associated therewith. Some of such accounts are under the different head namely Triveni, K.L. Sharmaji, S.S. Yadavji, Mazumdarji, Triveni Kisan account etc. The issue raised in the instant appeal is confined to the transaction appearing under the name Mazumdar who is the assessee i.e. Rajeev Mazumdar. In this account appearing under the head Mazumdarji, following matter (converted to English version) was appearing; ₹ 60,00,000= Cash + Ch. ₹ 85,00,000=00 To be taken from Chitrakoot ₹ 2,60,00,000=00 Ch boundary w. ₹ 62,60,000=00 ₹ 85,00,000=00 ₹ 22,40,000=00 banlance to be taken *** *** *** 12. As far as the figures of ₹ 60,00,000/- and ₹ 2,60,000/- which is on the left hand/debit side we observe that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ems appearing on the left hand side is the capital introduced by the assessee which means it was the fund brought in by the assessee in the project and on the right hand side the figure of the amount to be taken by the assessee from Chitrakoot project. So there is a fair possibility that against the investment of ₹ 62,60,000/- the assessee is entitled to receive ₹ 85,00,000/- from the project. This sum of ₹ 85,00,000/- may comprise of the capital introduced by the assessee and profits or it can purely be the income. 14. Since the assessee is one of the working partner in Regal Samarth Construction Company and the alleged transaction have direct nexus with the assessee but during the course of proceedings before both the lower authorities and before us assessee failed to produce any material evidence in support of his claim that the alleged amount of ₹ 85,00,000/- is not having any ingredient of undisclosed/unrecorded income. So we are of the view that ₹ 85,00,000/- is the amount to be received by the assessee and it can be purely unaccounted income or it can be an amount which comprises of income and capital introduced by the assessee. Since the r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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