TMI Blog2021 (3) TMI 1189X X X X Extracts X X X X X X X X Extracts X X X X ..... ms of the Urban Development Authority, and when plots are sold only after such development expenditure is bound to be incurred. It cannot be said that dry land of 10.69 acres can be sub-divided into house plots after development and sold as house plots without incurring any expenditure. The evidence in the form of development agreement dt. 15/06/2003, and payments made through account payee cheques and the fact of the development of the land into plots is sufficient evidence to prove the incurring of expenditure. Except for disbelieving the claim of the assessee, there is no adverse material collected by the assessing authorities. Confirmation letters from Shivaji Estates Constructions by Smt. Dantuluri Gita Kumari, wherein she had stated that the amount in question was offered to tax in her Income Tax Return and confirmation letters from one Mr. U. Prabhakar Rao, on the commission of ₹ 47,400/-, received/receivable by him, support of the contentions of the assessee. Thus, we uphold the contention of the assessee and allow the claim of the assessee of having been incurred development expenditure - Decided in favour of assessee. - ITA No. 572/Kol/2018 (Assessment Year: 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer in his remand report dt. 28/01/2015 stated that, the assessee could not explain the cash deposits made in IDBI Bank and whereas in his remand report dt. 04/12/2013, in the last para had held that the amount of ₹ 20,000/- is advance taken from Shri N.V. Rama Raju from Kapulappada Land and that the corroborative evidence in this regard was found to be genuine. On the amount of ₹ 10,94,286/-, the finding of the Assessing Officer was that the amount was in the name of the assessee s mother and consequent to her death, final disbursement is pending and that all these deposits in Global Trust Bank A/c and IDBI A/c were made through cheques and bank transfers, the details of which were furnished by the assessee. He pointed out that the ITO was in fact satisfied that the sources were explained. Thus, he submits that the question of not accepting the liability of ₹ 15,00,000/-, as payable to Shri N.V. Rama Raju and making addition on this account, is not tenable. On the issue of development of land, the ld. Counsel for the assessee, submitted that the assessee has furnished a copy of the agreement entered into with the contractor Mr. U. Prabhakar Rao for develop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Details of such deposits are as under- Date Amount (Rs.) Remarks 27/07/2004 10,000 A/ c open (contra) 04/08/2004 10,000 Recd. From Samudra Cement Ltd. 24/03/2005 15,00,000 Recd. From N.V.Rama Raju for Kapulappada - Land Total 15,20,000 The action of Ld. A. O. is not maintainable for reasons explained below. 1. The addition has been made without allowing reasonable opportunity as explained while narrating the background of framing assessment u/ s. 144. 2. Without prejudice to the above, the deposits in IDBI Bank as detailed above are explained hereunder :- (a) The deposit of ₹ 10,000/- on 27/07/2004 was made in cash and to open account with this Bank for the first time. (b) The deposit of ₹ 10,000/- on 04/08/2004 represented receipt from M/s. Samudra Cement Ltd. It is submitted that the Balance Sheet as on 31/03/2005 show ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f bank accounts were furnished by the assessee. Moreover, the Assessing Officer had in the remand report dt. 04/12/2013, had held as follows:- ₹ 5,00,000/- received from Mr. N.V.Rama Raju for Kapulappada land. The remaining credit of ₹ 20,000/- was for opening of Bank A/c. (₹ 10,000/-) and receipt from Samudra Cement Ltd. (₹ 10,000/-).' In support of this claim, copy of the 'Complaint filed under Order VII Rule I read with Section 26 of C.P.C. in the Hon'ble Court of District Judge at Visakhapatnam against the assessee by Sri N. V. Rama Raju and Smt. Saloni Varma (Rep. by power of attorney holder Sri N.V.Rama Raju) is furnished. In the said complaint, it is mentioned that - At the time of execution of agreement, dtd. 10.09.2004, the 1st Defendant had received cash of ₹ 15,00,000/- and cheque for ₹ 5,00,000/- bearing no. 033682, dtd.10.09.2004 drawn on Central Bank of India, Visakhapatnam ... . . The copy of relevant 'Agreement for sale' is furnished. However, bank statement of IDBI A/c. was not furnished. The third addition made in the assessment order relates to ₹ 30,94,286/- as liabilities not substantiated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6562475/- was claimed by the assessee to have paid to Smt. Dantuluri Gita Kumari and ₹ 47000/- is shown as commission paid .During remand report stage notice u/s. 133 (6) of the Act, was issued to Smt. Dantuluri Gita Kumari to whom the assessee claimed to have paid ₹ 65, 62,475/- as development charges. The letter was returned unserved. Assessee could not furnish any proof for commission paid of ₹ 47000/- These facts further substantiate addition of ₹ 66,09,875/- on account of land. During hearing at the assessment stage as well as appeal stage the assessee could not furnish any evidence to support his claim. Regarding this issue, I stand by the view and observation of the A. 0., as reflected in remand report vide this office letter bearing No. ITO / Wd. 1 (1) / Kol, / Remand Report /2013 - 14/1057 dated 04.12.2013. 11.1. The ld. CIT(A) had confirmed the addition on the ground that the assessee was not able to justify the payments made towards development charges as the payments made were not supported with evidence. We find that the assessee has furnished an agreement dt. 15/06/2003 with one Smt. Dantuluri Gita Kumari, for the development of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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