TaxTMI 
TaxTMI 
2015 (9) TMI 712
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....in short 'the Act'). The assessee has also raised a ground with regard to reopening of assessment under Section 147 of the Act. 3. Shri N.V. Balaji, the Ld.counsel for the assessee, submitted that the assessee is an individual engaged himself in the business of civil contract in the name and style of "Babu Associates". During the assessment year under consideration, a sum of Rs. 10 Crores was credited in the bank account of the assessee on 09.02.2007. The assessee explained before the Assessing Officer that one Shri K.R. Elangovan, an old friend of him, contacted two days before 9.2.2007 over phone and clarified whether the assessee would be interested in accommodating transaction of Rs. 10 Crores. The said Shri Elangovan has also clarif....
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....of which, Rs. 4 Crores were paid by way of demand draft to Shri M.P. Samsudheen, who is the power of attorney executor of sale deed, and another sum of Rs. 10 Crores was transferred by way of RTGS to Account No.10624892066 with State Bank of India, CIT Nagar Branch, Chennai, on 09.02.2007 in favour of M/s Babu and Associates. The Ld.counsel submitted that the assessee is not doing business as partnership concern in the name of "Babu Associates", and what was referred as "Babu and Associates" is a partnership firm represented by Shri C. Karthikeyan. Therefore, the assessee, according to the Ld. counsel, is nothing to do with this transaction. On a query from the Bench, whether the Account No. mentioned in the sale deed, held with State Bank ....
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....t page 5 of the paper-book, the Ld.counsel submitted that as per the statement of Shri Mohanlal Khatri, the gold was delivered to Babu and Associates. In fact, the assessee has nothing to do with Babu and Associates. According to the Ld. counsel, since the money was received by the assessee through banking channel and it was immediately transferred to Mohan Lal Jewellers for a commission of Rs. 3 lakhs, the entire addition cannot be sustained. The Ld.counsel has also clarified that it cannot be subjected to capital gains also since the land in question does not belong to the assessee. The Ld.counsel clarified that the assessee may not have any objection to bring the amount for capital gain tax in respect of the owners of the land. However, ....
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.... this amount was transferred on the basis of copy of the sale deed, which is available at page 17 of the paper-book. The fact remains that in order to mislead the authorities, "Babu and Associates" was described as a partnership firm represented by Shri Karthikeyan. However, the bank account of the assessee is correctly mentioned in the payment schedule. In fact, a sum of Rs. 10 Crores was credited in the account of the assessee. The assessee claims that it was transferred to Mohan Lal Jewellers on the instruction of Shri Elangovan and he retained only a sum of Rs. 3 lakhs. On examination, Shri Elangovan disowned the entire transaction and he went to the extent of saying that he does not know anything at all. The said amount was transferred....