2015 (7) TMI 353

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....f real estate. There was a search in the premises of the assessee as well as the partners of the assessee on 29/5/2001 u/s 132 of the Income-tax Act, 1961 [hereinafter referred to as 'the Act' for short]. During the search proceedings, certain incriminating documents were found and seized. During the assessment proceedings u/s 143(3) r.w.s.158BC of the Act, the Assessing Officer (AO) made certain additions on account of on-money paid by the assessee for purchase of immovable property. The issue travelled up to the Tribunal and the Tribunal remanded the issue to the file of the AO to establish that the assessee has paid onmoney and that such payment of on-money can be held to have been paid on preponderance of probabilities after exa....

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....before us while against confirmation of the addition on account of on-money allegedly paid by the assessee, the assessee is in appeal before us. 5. As regards the revenue's appeal, the learned counsel for the assessee has drawn our attention to the judgment of the Hon'ble Supreme Court in the case of CIT vs Vatika Township Pvt. Ltd., dated 15/9/2014 reported in (2014) 109 DTR(SC) 33 wherein it was held that the provisions of sec.113 are only prospective in nature and are not applicable to searches conducted prior to 1/6/2002. Copy of the said judgment is filed before us. Having heard both the parties and respectfully following the decision of the Hon'ble Supreme Court in the case of Vatika Township Pvt. Ltd., (cited supra) we dismiss ....

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....ent u/s 131 of the Act. He submitted that the assessee ought to have been given an opportunity to cross-examine the party before relying on his statement to make the addition. 7. The learned Departmental Representative, on the other hand, supported the orders of the authorities below and submitted that the assessee did not co-operate with the AO in the remand proceedings and did not produce relevant parties for examination by the AO. He submitted that Shri Jayaram had been examined by the AO u/s 131 and it was the stand of the assessee all along that Jayaram was, in no way concerned with the transaction and his statement cannot be relied upon. He submitted that the assessee had himself filed the affidavit of Jayaram before the CIT(A) sta....

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....chase consideration of land merely on the basis of the statement of seller who gave conflicting statements. Thus, according to him, the addition made by the AO on the basis of statement of Jayaram and also the non-speaking document found and seized during the course of search is not sustainable. 9. Having regard to the rival contentions and the material on record, we find that during the course of search, a document was found and seized in which are recorded the transactions of the assessee with Smt.Venkatamma and Smt.Venkatnarasamma for purchase of immovable properties. In this document, the dates of agreement of sale, sale consideration as per the agreement, date of execution of sale deed, amounts paid and the amounts due to be paid ar....