2012 (10) TMI 789

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....re was a survey action carried out in the residential premises of the assessee. During the course of the survey it was found that there was a sale agreement dated 12-03-2007 between the assessee Mr. C. Selvaraj and Mr. R. Jayakumar, S/o Mr. Ramadas. In the said agreement the property in SF No. 282/2 at Kalapatti village of Coimbatore Taluk measuring 1 acre was to be purchased by the assessee for a consideration of Rs. 2,71,42,870/-. The above agreed sum was paid by the assessee on various dates to Mr. R. Jayakumar. When the assessee was asked to explain, it was submitted that the assessee had purchased a property owned by one Mr. Mahendra Ramdas for Rs. 2,71,42,870/- and the same was in the possession of the assessee as a power of attorney.....

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....s further submitted that he had actually paid out of his own funds Rs. 2,71,42,870/- to Mr. Jayakumar Ramdoss and that he had received the same amount from the buyers, M/s. J and J Buying Services P. Ltd. represented by Mr. Kenny Jacob. The Assessing Officer after considering the submissions of the assessee came to the conclusion that the assessee had sold the property at Rs. 90,00,000/- and the remaining amounts were shown by the assessee on the following dates : 27-09-2007 Rs. 75,00,000 03-10-2007 Rs. 50,00,000 25-10-2007 Rs. 50,00,000 10-11-2007 Rs. 6,42,870   Rs. 1,81,42,870 3. On appeal it was submitted before the learned CIT(Appeals) that the property was purchased from Mr. Jayakumar Ramdoss for Rs. 2,71,42....

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....tion the amount paid in for the power of attorney and taking possession of the land and then executing the sale deed of Rs. 90,00,000/-. The other issue is regarding the addition u/s 68 of the Income-tax Act, 1961 which is confirmed."   4. On being aggrieved, the Revenue has carried the matter before the Tribunal. The learned DR strongly supported the order passed by the Assessing Officer. 5. On the other hand, the learned counsel for the assessee submitted that the assessee had purchased the property for Rs. 2,71,42,870/- and the same was debited in the books of account of the assessee and when he sold the same, credit was made in the books of account and taxes were paid accordingly. It was submitted that the Assessing Office....