TaxTMI 
TaxTMI 
2013 (1) TMI 66
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....le of his plot No. 137, Sector 1, Ambala, received on 25.02.2002 vide payees demand defat (DD) No. 625557 dated 22.02.2002 of State Bank of Patiala, Delhi (SBOP). The DD was later on found to be issued by Jai Laxmi Cooperative Bank Ltd., Fatehpuri, Delhi (for short described as 'Bank') through State Bank of Indore, Chandni Chowk. The copy of agreement for sale of plot produced by the appellant was entered into with one Leela Dhar Gupta son of Chandgi Ram of Delhi on 22.02.2002. The Assessing Officer (AO) held an enquiry into the matter and found this entry of Rs. 2,50,000/- to be fake and held it as undisclosed income routed by the appellant, in this manner. Addition of Rs. 2,50,000/- therefore, was made in the income of the appellant for the assessment year in question. It was further proposed to initiate penalty proceedings under Section 271(1)(C) of the IT Act vide order dated 24.03.2005 (Annexure A-1). 3. The appellant preferred appeal before CIT (Appeals) and filed certain documents to justify the entry of Rs. 2,50,000/- in his capital account. The Appellate Authority called for the remand report from AO. On examination of remand report and the proceedings conducted by AO, ....
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.... been impugned in the present appeal. 7. We have heard the appellant's counsel and counsel for the department and given our thoughtful consideration to the contentions raised by them. 8. The appellant-assessee has proposed the following substantial questions of law in this appeal:- "(i) Whether in facts and circumstances of the case, the action of the authorities below having no legs to stand as the same was on the basis of a similar transaction which has been decided in favour of the assessee, is legally sustainable in the eyes of law? (ii) Whether in fact and circumstances of the case, the action of the authorities below in ignoring the material/evidence produced by the assessee on record and relying solely upon the similar transaction in the subsequent year which is found to be genuine is legally sustainable in the eyes of law? (iii) Whether in facts and circumstances of the case, the action of the authorities below in not giving the assessee with an opportunity of cross-examining the person on whose statement the department has relied is violative of the principles of natural justice as held in the case of ....
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.... a substantial question of law as it is basically the appreciation of evidence by the assessing authorities as to whether the transaction set up by the appellant-assessee is genuine or not. The appellant-assessee took up the plea in his earlier appeal before ITAT that he can produce said Leela Dhar Gupta even now, cannot turn around and say that it was not within his power to reach said Leela Dhar Gupta and produce him before AO. It was rather found that though copy of agreement produced by the appellant assessee was entered with Leela Dhar Gupta son of Chandgi Ram, yet the draft of Rs. 2,50,000/- received by the appellant-assessee was prepared from the account of one Deepak Gupta and issued by the Bank. There was of course account of one Leela Dhar in the said Bank, who was contacted by the Department in the enquiry but that Leela Dhar stated that he never entered into such a transaction with the appellant-assessee. The authorities below also took serious note of the fact that there were transactions running into more than 40 crores in the account of said Deepak Gupta. Seriousness of such transaction was under investigation of the Department of Income Tax and ultimately it was fou....
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....ty to cross-examine the said person. This argument is wholly fallacious because the appellant-assessee claimed that Leela Dhar Gupta with whom he entered into an agreement was a different person than the said account holder. 14. Point No. (iv) deserves to be decided against the appellant in view of the discussion on point No. (iii). There is concurrent finding on appreciation of material collected and thus the authorities were justified in holding that assessee routed his undisclosed income to his capital account in this manner. 15. The main thrust of argument of appellant was based upon the record of Income Tax and Sales Tax Return of said Leela Dhar Gupta, from which the Revenue should have located the said assessee. This contention deserves to be rejected outrightly as CIT (A) in his earlier order dated 09.12.2005 (Annexure A-2) found as under:- "In the copies of return claimed to be of Sh. Leela Dhar Gupta, which were filed at the appellate proceedings, shows different addresses of Sh. Leela Dhar Gupta, i.e. one address shown as W2-120, Arya Samaj Road, Uttam Nagar, Delhi, another address is shown as B-29, Somdutt Chember, Bhikaji Cama Place, New Del....