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TMI Blog2021 (2) TMI 743X X X X Extracts X X X X X X X X Extracts X X X X ..... d by ACIT (Central)-2, Indore. 2. Assessee has raised following grounds of appeal:- 1.On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in confirming the action of Learned Assessing Officer in sustaining the addition of Rs. 17,00,000/- on account of brokerage, without considering the facts and circumstances of the case. 2.The appellant craves leave to add, amend, alter or delete the said grounds of appeal. Additional Grounds: 1.On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in confirming the action of Learned Assessing Officer in sustaining the addition of Rs. 17,00,000/- on account of brokerage, without considering the facts that no incriminating ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that for this land deal he was to receive a brokerage of Rs. 27,00,000/-. He further stated that out of this Rs. 27,00,000/-, Rs. 5,00,000/- has been received through cheque during financial year 2008-09, Rs. 5,00,000/- was further received through cheque during financial year 2009-10 and Rs. 10,00,000/- was received in cash during financial year 2013-14 and all these receipts have been offered to tax. The balance of Rs. 7,00,000/- has not been received till date. Though it was contended that the assessee shows income on cash basis but Ld. A.O was not satisfied and he after considering the submissions made by the assessee concluded that Rs. 17,00,000/- has not been offered to tax by the assessee during the year. Accordingly the income was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... received the same would be offered to tax. 9. Per contra Ld. Departmental Representative vehemently argued supporting the order of both the lower authorities. 10. We have heard rival contentions and perused the records placed before us. As regards the legal ground raised by the assessee which we have admitted for adjudication in view of the judgment of Hon'ble Apex Court in the case of National Thermal Power Co. Ltd V/s CIT 229 ITR 383 (supra), we on examination of the records observe that during the course of search certain documents were been seized which have been referred by the Ld. A.O in para 8 of the assessment order. During the course of search itself assessee was asked the questions about the brokerage income received on the land ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y Badjatya had brokered the land dealing at Narsingh Kothi, Kanadia Road, Indore between Late Maharani Smt. Laxmi Kurnari and M/s D.S. Enterprises, a firm of Doshi group. In reply to Q. No. 4,5,6,7 of your statement recorded on 28/2/2014 u/s 132(4) of the Act, you have stated that an amount of Rs. 27, 00,000/- was received by you as brokerage. You are requested to explain as to why this amount of Rs. 27, 00,000/- should not be treated as your income and why addition of Rs. 27,00,000/- should not be made for the F.Y. 2008-09 (A.Y. 2009-10). 12. The assessee gave following reply to the above said query:- Reply: It is correct to say that, I along with Shri Sanjay Badjatya brokered the land deal of Narsingh Kothi between Late Maharani Smt. L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the balance Rs. 7 lakh has not been received by me hither to; hence there is no question of taxing the receipt of Rs, 7 lakh in my hand, as J am offering income by way of brokerage & commission on cash basis since last more than 25 years. In nutshell, I may state that J was to get brokerage of Rs. 27 Lakh but out of this amount I have received Rs. 20 Lakh till now & same has been offered for taxation as under 1.5,00,0001- (A.Y-2009-10) 2.5,00,000/- (A.Y-2010-11) 3.10,00,000/- (A.Y-2014-15) As the balance Rs. 7 Lakh has not been received by me so far, therefore, the same has not been offered for tax. As & when this balance 7 Lakh is received by me, the same will be offered for tax 13. From going through the above reply as we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der to ascertain the correctness of the assessee's claim. In case it is found correct then the Ld. A.O will delete the addition of Rs. 10,00,000/- . The Ld. A.O is directed to extend reasonable opportunity of being heard to the assessee to place necessary submission and documents on record. 15. We therefore in the given facts and circumstances of the case are of the considered view that out of the impugned addition of Rs. 17,00,000/-, the addition of Rs. 7,00,000/- stands deleted and the remaining addition of Rs. 10,00,000/- shall stand deleted if the assessee is able to prove to the satisfaction of Ld. A.O that sum of Rs. 10,00,000/- towards brokerage income earned from the transaction of immoveable property between M/s D.S. Enterprises a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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