TaxTMI 
TaxTMI 
2013 (12) TMI 471
X X X X Extracts X X X X
X X X X Extracts X X X X
....p of cases, a notice under S.153C of the Act was issued to the assessee. In response to the said notice the assessee filed his return of income on 8.10.2008, declaring total income of Rs.1,02,200 and agricultural income of Rs.21,000. In response to notice under S.143(2) of the Act, and subsequent opportunity given by the Assessing Officer, since the assessee did not appear and furnish any detail, the Assessing Officer proceeded to complete the assessment ex-parte under S.144 of the Act. From the information available with him, the Assessing Officer found that the assessee had received an amount of Rs.89.50 lakhs from Grand Bay Estate Developers Ltd. and Venezia Developers Ltd., which are group companies of DLF, in connection with sale of la....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... In course of appellate proceedings, the assessee stated that out of the three drafts, only one draft bearing No.810071 for Rs.40,02,500 was deposited into his account with State Bank of Hyderabad Shamshabad Branch without his knowledge. The other two drafts were not deposited in his account. The CIT(A) found from the details mentioned in the compromise petition filed before the Lok Adalat in connection with dispute relating to sale of land, that the assessee had been paid the amount of Rs.89.50 lakhs through three demand drafts. The CIT(A) held that since the payments have been made through banking channel, it is for the assessee to prove that the drafts were not at all realised by him. The CIT(A) therefore, confirmed the addition of Rs.8....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... bank account and has encashed those amounts through signed blank cheques fraudulently obtained form the assessee. So far as the other two demand drafts are concerned, it was submitted that they were neither credited through the assessee's bank account, nor encashed through it. It was submitted that the assessee has informed the bank about the fraud committed by Shri Varma and has also lodged a complaint with the Police Station, Shamshabad, R.R. District about the fraud and unauthorized deposit of DD of Rs.40,02,500 and cheque of Rs.5 lakhs. It was further submitted that the assessee had no knowledge about the proceedings before the Lok Adalat, and therefore, no addition can be made on the basis of such proceedings. It was further submitted....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... We have considered the submissions of the parties and perused the materials on record. It is seen from the record that during the assessment proceedings, on the basis of certain materials on record, the Assessing Officer found that the assessee has received Rs.89.50 lakhs through three demand drafts; Rs.5 lakhs through cheque and a further amount of Rs.89.50 lakhs in cash, for services rendered by him in connection with sale/purchase of land by DLF group of companies. Though the Assessing Officer granted opportunity to the assessee to explain, the assessee did not appear before him. As a result, the Assessing Officer was compelled to complete the assessment ex-parte by making the addition. It is also a fact on record that a demand draft o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ird parties on the basis of which additions were made were never confronted to the assessee. In our view, such plea of the assessee is not acceptable. Considering the fact that the assessee himself has desisted from appearing before the Assessing Officer during the assessment proceedings, in which event he could have been confronted by the Assessing Officer with the material in question, the blame for not confronting the assessee with the material in question, does not totally lie on the Assessing Officer. At the same time, however, natural justice and fair play demands that the first appellate authority, considering the pleas of the assessee with regard to opportunity of substantiating its case in the face of the seized material, could hav....