TMI Blog2021 (3) TMI 918X X X X Extracts X X X X X X X X Extracts X X X X ..... ons. The copy of the bank statement is also placed. Creditworthiness of Shri Kanjibhai Desai is also not in doubt as the amount received by the assessee represents its own money which was advanced in the earlier year as elaborated somewhere in the preceding paragraph. - Decided against revenue. - ITA No. 1226/AHD/2018 With C.O. 96/Ahd/2019 (Asstt. Year: 2011-2012) - - - Dated:- 22-2-2021 - SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND MS MADHUMITA ROY, JUDICIAL MEMBER Revenue by: Shri R.R. Makwana, Sr. D.R Assessee by: Shri Vartik Chokshi with Shri Biren Shah, A.Rs ORDER PER WASEEM AHMED, ACCOUNTANT MEMBER: The captioned appeal is filed by the Revenue and the CO is filed by the Assessee against the order of the Learned Commissioner of Income Tax (Appeals)-11 Ahmedabad, [Ld. CIT (A) in short] dated 05/03/2018 arising in the matter of assessment order passed under s. 143(3) r.w.s. 147 of the Income Tax Act, 1961 (here-in-after referred to as the Act ) dated 05/02/2016. The assessee has filed Cross Objection in the Revenue s appeals bearing ITA no. 96/AHD/2019 for the Assessment Year 2011-2012. 2. The only issue raised by the Revenue is that the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs. 3.2 The AO, further noted that once the deal was not materialized then the land aggregator was to return the money to the group concern instead of the assessee. It was also pointed out by the AO that the land deals are time taking and therefore the advanced to the land aggregator is to be given well in advance but in the case on hand, the cash was immediately deposited in the bank account of the land aggregator after receiving the same from the group concern namely M/s Radhe Consultancy which was subsequently transferred to the assessee. 3.3 Furthermore, once the land aggregator has accepted the money in cash then it was supposed to be returned in cash in the event of non-execution of land deal but the same was returned through the banking channel. 3.4 In view of the above the AO was of the opinion that the cash deposited in the bank account of the land aggregator was representing the unaccounted money of the assessee which was brought in the books of accounts through the banking channel in the manner as discussed above. Accordingly the AO treated the same as unexplained cash credit of the assessee under section 68 of the Act amounting to ₹ 3.59 crores and added ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hrough account payee cheques and appellant has submitted copy of bank statement of depositor as well as appellant wherein cheques received by appellant from such party is duly reflected and same clearly prove genuineness of transaction and creditworthiness of the party. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx The amount of ₹ 3.59 crores received through account payee cheques are repayment of loan earlier given by Appellant and same does not represent any new loan takn by Appellant Company. The AO has also observed that when funds are given by Radhe Consultancy to Kanjibhai Desai it is illogical that Kanjibhai Desai returns back such amount to Appellant Company but the fact remains that Appellant has given cheque in earlier year hence repayment is received partially in current Assessment Year and such amount does not represent undisclosed income of Appellant. It is also observed that statement of Ashish Patel Director of the Appellant Company was recorded under Section 131(1A) on 26th November, 2014 wherein in reply to Question No.5 he has categorically explained the details regarding funds given to kanjibhai Desai and repayment of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee has complied with the conditions as specified under section 68 of the Act. 11.1 First of all, we find that the assessee has shown an advance in the immediate preceding assessment year as on 31 March 2010 in the name of Shri Kanjibhai Desai amounting to ₹ 23.02 crore. This fact has not been disputed by the AO which is evident from the audited financial statement of the assessee placed on pages 57 of the paper book. The relevant extract of the balance sheet is reproduced as under: Land Advance Group Summary 2-April-2010 to 31 March 2011 Opening Balance Transactions Closing Balance Debit Credit Kanjibhai Bhemabhai Desai 23,02,89,000.00 Dr 1,61,00,000.00 3,69,00,000.00 20,94,89,000.00 Dr 11.2 It was pointed out by the learned AR before us that the amount received from the land aggregator namely Shri Kanjibhai Desai represents the own money of the assessee which was advanced on the ea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we uphold the same. Thus the ground of appeal of the Revenue is dismissed. 12. In the result the appeal filed by the revenue is dismissed. Coming to the CO of the assessee bearing CO No.96/Ahd/2019. 13. The assessee has raised following grounds of cross objection 1. In law and in the facts and circumstances of the appellant s case, the Ld.CIT(A) has erred in rejecting the relevant ground of appeal raised by the appellant before him challenging the validity of the proceedings initiated u/s.147 of the I.T Act. 2. The appellant craves leave to add, alter, amend and/or withdraw any of the grounds or ground either before orat the time of appeal hearing. 14. As we have decided the issue, on merit, raised by the Revenue in favour of the assessee vide paragraph number 11 of this order, therefore we do not find any reason to adjudicate the issue raised by the assessee on the validity of the assessment framed under section 147 of the Act. As such, the technical issue raised by the assessee becomes infructuous. Furthermore, the learned AR for the assessee at the time of hearing has also before us submitted that he has been instructed by the assessee not to press t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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