TMI Blog2018 (3) TMI 1908X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act. Mere acceptance of addition made in the assessment on undisclosed cash deposits in Standard Charted Bank and undisclosed payments on credit card bills issued by the Union Bank of India, cannot be a ground that the assessee has made huge on money warranting addition under section 69 of the Act. The concept of preponderance of probability cannot be applied in this case because, in ground reality, the Department failed to make any enquiry in terms of provisions of section 133 of the Act with Shri Konnaru Rajendra Prasad, Shri T. Ranga Rao, Directors of M/s. Stylish Homes Real Estate (P) Ltd. and recorded their statement of having collected excess amount from the assessee over and above the cost of plot at ₹.5000/-per sq. yar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dition made under section 69 of the Income Tax Act, 1961 [ Act in short]. 2. Brief facts of the case are that the assessee is an individual and filed his return of income for the assessment year 2010-11 on 12.10.2010 admitting total income of ₹.5,85,000/-. The return filed by the assessee was accepted under section 143(1) of the Act. On the basis of investigation conducted by the Central Bureau of Investigation in the case of Emaar Hills Township Private Limited [EHTPL] and reference from the DCIT, Circle 2(3), Hyderabad, the Assessing Officer initiated proceedings under section 147 of the Act were initiated by issue of notice under section 148 of the Act and served on the assessee on 13.12.2013. During the course of assessment pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rative material was established in support of the statement of third parties. By relying upon various decisions of various Courts including the decisions of the Tribunal, it was further argued that the reliance on the statement of a third party alone is not sufficient to decide the on money payment to add it as undisclosed income of the assessee under section 69 of the Act and prayed that the addition made by the Assessing Officer should be deleted. 5. On the other hand, the ld. DR strongly supported the orders of authorities below. 6. We have heard both sides, perused the materials available on record and gone through the orders of authorities below. In this case, it is an undisputed fact that the assessee is an individual and the so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue and the burden cannot be said to be discharged by merely referring to the thirty party statements. Alternatively, with a view to assist the Assessing Officer and to reduce the rigour of the burden that lay upon the Assessing Officer, provisions of sections 68, 69, 69A to 69D of the Act have provided for certain deeming provisions, where, an assumption of income is raised in the absence of satisfactory explanation from the assessee. As these are deeming provisions, the conditions precedent for invoking such provisions is required to be strictly construed. The facts and circumstances giving rise to the presumption of having undisclosed income to make investment have to be established with reasonable certainty. In this case it was not d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y income from salary and no other source of income was detected; or there was any search or survey in the case of the assessee or the plot seller and acquired any piece of evidence of having paid on-money by the assessee. Each case has to be decided according to the facts and based on the material evidence contemplated against the assessee. 6.5 Considering the entire gamut of the case, we find that the Revenue has failed to discharge its duties; no piece of evidence against the assessee having paid on money was brought on record and instead, made up a case on surmise and conjectures which cannot be allowed. Under the above facts and circumstances, we set aside the order of the ld. CIT(A) and direct the Assessing Officer to delete the add ..... X X X X Extracts X X X X X X X X Extracts X X X X
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