TMI Blog2022 (5) TMI 1007X X X X Extracts X X X X X X X X Extracts X X X X ..... y material evidences - CIT(A), in our considered opinion, clinched the issue in correct perspective and held that the construction of house involves cash purchases from many people most of whom are in organized sector and would not like to appear before authorities. However, the disallowance of 30%, in our opinion, is on the higher side. Considering the given factual matrix, wee direct Ld. AO to restrict the same to the extent of 10% instead of 30% as estimated by Ld. CIT(A). Appeal partly allowed. - ITA No.1661/Chny/2018 - - - Dated:- 18-5-2022 - Hon ble Shri Mahavir Singh, Vice President And Hon ble Shri Manoj Kumar Aggarwal, Am For the Appellant : Shri k Meenakshisundaram-Ld. AR For the Respondent : Shri G. Johnson (Addl. CIT) Ld. DR ORDER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2011-12 arises out of the order of learned Commissioner of Income Tax (Appeals)-9, Chennai [CIT(A)] dated 20.04.2018 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) r.w.s. 254 of the Act on 28.12.2016. The grounds raised by the assessee read as under: 1. The learned Commissioner of Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITA No.2047/Mds/2015 dated 07.04.2016. A copy of the same is on record. The facts as noted in the order are that the that the assessee made cash deposits of Rs.80.36 Lacs in Tamil Nadu Mercantile Bank Ltd. between 06.12.2010 to 19.03.2011 and demand draft of Rs.39 Lacs was also credited. The aggregate deposits worked out to be Rs.119.35 Lacs. The deposits were stated to be sourced out of sale of certain agricultural land inherited by the assessee from his father. The land was sold for Rs.534.10 Lacs including share of other co-owners. The assessee purchased residential plot admeasuring 2380 square feet at Mangadu and constructed house with plinth area of 4000 square feet in the name of his unmarried daughter out of net sale consideration and claimed exemption u/s 54F. The assessee submitted that after settling the share of sister and mother, the sale amount from land was shared equally between five brothers. Out of net sale consideration of Rs.97.82 Lacs as received by the assessee, the land was stated to be purchased for Rs.19.33 Lacs and amount of Rs.79.49 Lacs was stated to be spent on construction of building. However, Ld. AO rejected claim u/s 54F and treated the differential ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e order of the Commissioner of Income Tax (Appeals) on this ground and dismiss the ground of the assessee. 9. The ld. Assessing Officer has made an addition of Rs.97,82,000/- to the returned income without considering the facts that the assessee has received net consideration for his share Rs.97,82,000/- and the Department has not disbelieved and accepted. The assessee withdraw the amount from Tamilnadu Mercantile Bank Ltd and used for registration of land and the construction of residential property under self supervision and with the support of family members. The ld. Authorised Representative drew our attention to Tamilnadu Mercantile Bank account at page 55 of paper book explaining the credits of sale proceeds deposited from 6th December, 2010 to 15th December, 2010 and the assessee has withdrawn the total consideration during the period from 21st December 2010 to 4th January, 2011. It is clearly evident from action of the assessee that money was withdrawn and utilized for purchase of land in the name of daughter on 21.01.2011 before the end of the previous year and commenced construction of residential flats. The findings of the Assessing Officer based on suspicion without ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction. Therefore, considering the apparent facts and circumstances, we are of the opinion that matter need to be reexamined as ld. Assessing Officer has not recorded any statement or made inquiry on this aspects. We set aside the order of Commissioner of Income Tax (Appeals) on this issue and remit the entire issue to the file of the Assessing Officer for limited purpose only to verify the excess amount in bank amount pertains to mother and sister of the assessee. The assessee should be provided adequate opportunity of hearing heard before passing an order. This ground of the assessee is partly allowed for statistical purpose. 3. Pursuant to the aforesaid directions, an assessment has been re-framed on 28.12.2016 wherein both the additions of Rs.97.82 Lacs as well as for Rs.21.53 Lacs has again been repeated. In support of construction cost of Rs.97.82 Lacs, the assessee submitted that owing to ill health, he could not go to the construction site and supervise the construction. Hence, he distributed the amounts to close relatives viz. son, daughter, son-in-law etc. who, in turn, utilized the money and constructed the house property. The confirmation from these persons was also f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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