9911796707
TMI Blog2019 (7) TMI 1773X X X X Extracts X X X X X X X X Extracts X X X X ..... ed Representative for assessee appeared from time to time and filed various dates, as called for. During the course of assessment proceedings, the AO noticed that there was information from DDIT (Inv.) that the assessee has made cash payment of Rs. 100 Lacs to M/s Nish Developers P.Ltd against booking of flat. The AO further observed that statements were accorded on oath from Mr. Kailash Agarwal, CEO of Nish Developer and Mr. Praveen Mishra, trusted employee of the concern where they have admitted receipt of cash for booking of flat from the assessee. On the basis of information received from DDIT (Inv.), the AO, called upon the assessee to explain as to why cash payment of Rs. 1 crore paid to M/s Nish Developer for booking flat shall not be treated as unexplained money. In response to show cause notice, the assessee stated that he has neither paid cash nor the builder has admitted that they have received cash for booking flat. Although, one of employe of the builder admitted in statement regarded during search that the company has received cash for booking of flats, but there was no specific mention about the name of the assessee. It was further submitted that a letter from M/s Ni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the assessee is assed as below: Profits from Business Rs. 13,48,560/- Income from other sources Rs. 7,751/- Add: Income of which source is not known Rs. 1,00,00,000/- Gross total Income Rs. 1,13,56,311/- Less Chp. VIA deduction Rs. 1,18,487/- Net Taxable Income Rs. 1,12,37,824/- Assessed u/s 143(3) of the Income-tax Act, 1961. Give credit for prepaid taxes after due verification. Charge Interest u/s 234A, 234B & 234C as applicable. Issue Demand Notice/Challan accordingly. Calculation sheet I.T.N.S.-150 enclosed is made part of this order. Issue notice u/s274 r.w.s. 27l(l)(c) for concealment of income. 4. Aggrieved by the assessment order, the assessee preferred an appeal before the CIT(A). Before the CIT(A), the assessee has filed detailed return submissions on this issue which has been reproduced at Para no.4 of page NO. 3 to 7 of Ld. CIT(A) order. The sum and substance of arguments of the assessee before the Ld. CIT(A) are that he has neither paid cash nor the developer has admitted of having receiving cash for booking flat. Although, there was a statement from one employee, but such statement has been subsequently retracted by filing affidavit. Therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of Rs. 2,75,00,000/-at the time of booking. The appellant made payment of Rs. 5,00,000/-being booking amount by cheque no. 438420 dated 31/10/2010 drawn on Dena Bank, The appellant made further payment of Rs, 20,00,000/-by cheque no. 237228 dated 30/12/2011 drawn on Dena Bank and further payment of Rs. 12,50,000/- by cheque no. 242130 dated 25/04/2012 drawn on Dena Bank. In all the appellant had made a total payment of Rs. 37,50,000/- up to 31/03/2013 against the booking and allotment of the said flat. The appellant's wife, who is a joint owner, also contributed the same amount. The agreement for purchase of the said flat was executed on 24/12/2013 and market value of the said flat has been determined by the registrar at Rs. 2,72,20,000/- for the purpose of stamp duly. When the market value of a flat which was agreed to be purchased in 2010 for a purchase price of Rs. 2,75,00,000/- is determined after more than 3 years by the sub-registrar at Rs. 2,72,20,000/-, there is no reason of making any cash payment or on money as alleged by the AO. The appellant also furnished the copy of correspondence letter with builder wherein builder clearly denied receiving any "on money". The m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s ground of appeal is allowed. 6. The Ld. DR submitted that the Ld. CIT(A) was erred in deleting additions made in the hands of the assessee in respect of cash payments for booking flats ignoring the facts that amount of Rs. 1 crore has been paid in cash belongs to the assesse. The Ld. DR further submitted that the AO has brought out clear facts in light of statement recorded from CEO of M/s Nish Developers P.Ltd. and a trusted employee, where they have categorically admitted of having receipt of cash for booking flats. The subsequent retraction statement is only a self serving document and there cannot be any credibility attached to subsequent correspondence, thus, the retraction has no value unless the assesee prooves that how it is not a valid statement. 7. The Ld.AR for the assessee, on the other hand, strongly supporting order of the CIT(A) submitted that the CIT(A) has rightly deleted the additions made towards cash payments for booking flat, when the assessee has explained with necessary evidences that no cash has been exchanged between the parties in respect of booking flat. The Ld. AR further submitted that the assessee has filed an agreement between the parties as per ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
