TaxTMI 
TaxTMI 
TaxTMI 
2016 (1) TMI 230
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.....1/CHANDI/2009 for the assessment year 2005-06, claiming following substantial questions of law:- "i) Whether on the facts and in the circumstances of the case and in law the order of the Hon'ble ITAT is correct in deleting the addition made by the Assessing Officer, holding that assessee cannot be said to be benami of Shri Nalnish Aggarwal, whereas Shri Nalnish Aggarwal was neither produced before the AO nor any evidence was given in support of his capacity to make payment of Rs. 20 lakhs? ii) Whether on the facts and in the circumstances of the case and in law, the order of the Hon'ble ITAT is correct in deleting the above addition made by the Assessing Officer, in the absence of any evidence of genuineness of the payment/tran....
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....also submitted that he had invested only Rs. 5 lacs from the sale proceeds of H.No.886 at Panipat. The balance of Rs. 20 lacs were invested by Shri Nalnish Aggrwal (Rs. 4 lacs by cheque of HDFC Bank, Sector 35, Chandigarh, Rs. 6 lacs by cheque of Bank of India,Sector 16, Chandigarh and balance Rs. 10 lacs in cash). The Assessing Officer vide order dated 24.12.2007, Annexure A.1 made an addition of Rs. 25 lacs in the hands of the assessee holding that Shri Nalnish Aggarwal was not a genuine party, therefore, the total amount of Rs. 25 lacs paid to M/s Chandigarh Overseas Pvt. Limited was treated as unexplained income of the assessee inter alia on the basis of the reasons i.e. Shri Nalnish Aggarwal was not known to him; Mr. Aggarwal did not r....
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.... controverting the aforesaid reasons. The findings were upheld by the Tribunal. The findings recorded by the Assessing Officer are as under:- "3.5 For ascertaining the genuineness of the facts stated by the assessee, the information was called under section 133(6) from the Bank of India. It was found that Shri Nalnish Aggarwal had only one saving account SB 7909 in Bank of India. Copy of statement submitted by the bank proves that there is no withdrawal from this account of the cheque mentioned in the agreement. Information under section 133(6) was again asked from Bank of India Sector 16, Panchkula. It was found that cheque No.260257 of Rs. 6,00,000/- dated 1.1.2005 was issued from the account of Mr. Nalnish Aggarwal in favour of M/s Cha....
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.... from where cheques have been withdrawn as mentioned in the agreement and also stated by the assessee. The cheque of Rs. 6 lacs was withdrawn from Bank of India, Sector 16, Panchkula which is not the account mentioned in the agreement but from another account. It may be possible that the assessee used the name of Shri Nalnish Aggarwal to operate the account just to avoid tax and to channelize his unaccounted money. Moreover the account from which Rs. 6 lacs have been withdrawn was opened on 1.1.2005 i.e. on the same day of the agreement with M/s Chandigarh Overseas. 3.7 In view of all above, it is clear that here is no evidence of any type whether Shri Nalnish Aggarwal was a genuine party to the agreement and the payments were actually ma....
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....l. The examination of the entire evidence prove that the assessee has justified the investment in M/s Chandigarh Overseas Pvt. Limited, Chandigarh jointly. It is in the normal business relationship that many persons come together for making a joint investment. It is also to be noted that the documents were found in the premises of M/s Chandigarh Overseas Pvt. Limited. The agreement clearly indicates that there are two persons i.e. Shri Rajiv Kumar Manuja and Shri Nalnish Aggarwal. If Shri Manuja has responded and cooperated with the department that does not mean that investment made by Shri Nalnish Aggarwal is made by Shri Manuja. It was obligatory on the part of the Assessing Officer to make further investigation to find out the whereabout....
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....ndigarh Overseas Pvt. Limited wherein there is a mention of receipt of Rs. 25 lakhs, the details of which has also been given. There is a certificate from Chandigarh Overseas Pvt. Limited that the amount of Rs. 5 lakhs was invested by the assessee. In this affidavit of Smt.Tarawanti, there are details and the details of PAN number and cash payment of Rs. 26 lakhs. The sale deed clearly mention about the sale of H.No.559, Sector 10, Panchkula and the consideration amount of Rs. 16,40,000/- entered into between Smt.Usha Verma and Shri Nalnish Aggarwal. All these documents are available in the paper book. The reallotment letter issued by Haryana Urban Development Authority has also been furnished alongwith copy of return of Shri Nalnish Aggarw....