TaxTMI 
TaxTMI 
2012 (12) TMI 636
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.... 2. In this appeal, the revenue raised the following effective grounds:- "1. The ld. CIT (A) has failed to appreciate the fact that the assessee could not produce the relevant books of account during the reassessment proceedings though the same were produced before the AO in original assessment, the AO has no other option except to reject the book result and estimate the income @ 8% on gross receipts. 2. Ld. CIT (A) is not correct in rejecting the action of AO for the assessment year 2003-04 when the same action of estimating the net income was upheld for other asst. Yeas i.e., 2003-04, 2006-07 and 2009-10." 3. Briefly the facts are, the assessee apart from sub-contract works also earns income under the head 'business' from ....
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....tentions raised by the assessee and also examining the materials on record found that regular assessment u/s 143(3) was completed for the relevant assessment year after examining the books of accounts which were found in order. The CIT (A) therefore allowed the appeal of the assessee. 4. We have heard rival submissions and examined the materials. The AO did not have any incriminating material before him which was found as a result of search on the basis of which he could have come to a conclusion that the books of accounts maintained by the assessee were not correct. In the absence of any incriminating material, the AO is not justified in rejecting the books of account and estimate income in proceedings initiated u/s 153A, when regular a....
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....as paid in the following manner:- Rs.25 lakhs by way of cheque dated 16-5-2008 bearing No.225167, Andhra Bank, Nellore out of joint account of the assessee and his father Sri N. Ramachandra Reddy and the balance amount of Rs.30 lakhs was given by way of cash. The AO in course of assessment proceedings u/s 143(3) read with section 153A after considering the statements recorded from the assessee's father and other persons who were party to the transaction, came to the conclusion that the source of Rs.55 lakhs given as advance could not be satisfactorily explained by the assessee. It was observed by the AO that there are contradictions in the statements given in the case of Sri Venugopal Reddy and his Brothers. Even so far as the ....
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.... from him has stated that he has received advance from Sri Ramachandra Reddy and not from the assessee. Therefore, it was contended on behalf of the assessee that there being no materials on record to link the assessee with payment of Rs.55 lakhs, the addition could not have been made at the hands of the assessee. The CIT (A) after considering the contentions of the assessee and also going through material on record found that the amount of Rs.55 lakhs was paid as advance to the prospective seller by receiving contribution from different persons. The CIT (A) further found that the prospective seller of the land has backtracked from the transaction and returned back the advance amount of Rs. 55 lakhs by way of cheque drawn on Andhra Bank ....