TaxTMI 
TaxTMI 
2016 (3) TMI 451
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....I.T.A. No.382/Lkw/2015. Ground No. 1 & 2 are inter-connected, which read as under: "I. The Ld. Commissioner of Income Tax (Appeals)-I, Lucknow [here-in-after referred to as the Ld. CIT (A)'s] erred on facts and in law in conforming the addition Rs. 81,29,522/- which was made by the AO by taking 20% of all assets as shown in the Balance Sheet at Rs. 4,06,47,614/- being investment in land and building Rs. 2,94,65,000/-, fixed assets Rs. 13,85,984/- Current Assets Loans and Advances Rs. 97,96,630/- wholly on notions, conjectures and surmises. II. On the facts and in the peculiar circumstances of the present case the Ld. CIT (A)'s was not at all justified in conforming the addition of Rs. 81,29,522/- without bringing any material on record or demonstrating as to how or on what basis the same have been treated to be not explained and further in holding that the opening capital is not explained and thus the addition so confirmed on irrelevant considerations is bad-in-law and void-ab-initio and thus the addition so confirmed may kindly be ordered to be deleted." 4. It was submitted by Learned A. R. of the assessee that the balance sheet of the assessee as on 3....
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....ent year 2006-07 and therefore, in respect of these two properties, no addition can be made in the present year, being assessment year 2007-08. The third property at Bhilawan, Lucknow is said to be acquired on 17/04/2006 and stamp duty for this property is stated to be Rs. 1,74,500/- and the market value of this property for stamp duty purposes is stated to be Rs. 43,55,200/- but the amount actually paid is Rs. 3 lac only. The complete details of investment in properties of Rs. 2,94,55,000/- is available on page No. 57 of the paper book, which is reproduced below for the sake of ready reference: 6.1 From the above details, reproduced from page No. 57 of the paper book, it is seen that the property at Bhilawan, Lucknow has been shown at Rs. 3 lac + stamp duty Rs. 1,74,500/- and legal fees Rs. 10,000/-, total Rs. 4,84,500/- and we do not know from where the CIT(A) has noted the actual sale consideration of Rs. 43,55,200/- in his chart on page No. 23 of his order. Regarding a property at Habibullah Estate, Hazaratganj, Lucknow said to have been acquired by the assessee on 19/10/2006, the value appearing in the above chart is Rs. 20.50 lac + stamp duty Rs. 12,68,500/- + legal fees R....
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....whims and fancies may kindly be ordered to be deleted." 8. It was submitted by Learned A. R. of the assessee that the assessee is owner of agricultural land of 11.737 hectares and in this regard, he drawn our attention to pages 381 to 413 of the paper book where copy of agreement and purchase deed of agricultural land at village - Kamlapur, Haidargarh Barabanki is available. He also submitted copy of Fasli of agricultural land as available on pages 414 to 415 of the paper book. He further submitted that even if it is felt that the agricultural income shown by the assessee is excessive, reasonable estimate may be made in this regard. 9. Learned D. R. of the Revenue supported the orders of the authorities below. 10. We have considered the rival submissions. We find that this is the claim of the assessee that he is having agricultural land of 11.737 hectares. This claim is supported by purchase deed also. Now the question is about the quantum of agricultural income from this land. In this regard, it is claimed by the assessee that part of land was given on Batai to two persons and on this account, he received Rs. 52,000/- per month from Ram Karan and Rs. 50,000/- per month fr....
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.... income on the same basis of Rs. 20,000/- per Bigha per anumn. In this manner, total agricultural income of Rs. 14.00 lacs out of the claim of Rs. 35.25 Lacs deserves to be accepted. We order accordingly. Accordingly, ground No. 3 & 4 are partly allowed. 11. In the result, the appeal of the assessee stands partly allowed. 12. Now we take up the second appeal of the assessee which is arising out of the assessment proceedings u/s 143(3)/147 of the Act i.e. I.T.A. No.381/Lkw/2015. 13. Ground No. 1,2 & 3 are regarding validity of the reassessment proceedings. In course of hearing before us, it was submitted by Learned A. R. of the assessee that these grounds are not pressed and accordingly, these grounds are rejected as not pressed. 14. Ground No. 8 is regarding confirming the addition of an amount of Rs. 48,650/- as provisions & expenses payable. It was submitted by Learned A. R. of the assessee that this ground is also not pressed and accordingly, ground No. 8 is also rejected as not pressed. 15. Ground No. 4 & 5 are in respect of same issue i.e. regarding addition of Rs. 39.50 lacs in respect of unsecured loan from Shri C. P. Goel. Regarding this ground, it was submit....
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....ed on him and he confirmed the transaction by writing a letter directly to the A.O. Regarding is credit worthiness, he submitted that in view of Bank overdraft of Rs. 40,85,584.29 on 26.03.2007 as per Bank Statement of Shri C. P. Goel from Bank of India, Indira Nagar Branch, it should also be accepted that he was having creditworthiness to give loan of Rs. 39.50 Lacs to the assesse. 16. Learned D. R. of the Revenue supported the orders of the authorities below. 17. We have considered the rival submissions. We find that in Para 6.4 of his order, it is stated by CIT(A) that the assessee has given the details of three amounts of Rs. 4 lac, Rs. 1.50 lac and Rs. 1.50 lac, which have been allegedly taken by cheques and credited in the Bank of India account by the assessee. Thereafter, he has stated that even these details are not verifiable from the bank statement but we find that in the bank statement of the lender furnished before us, all these entries are appearing in addition to two more cheques. He has further noted that this is also not known whether Shri C. P. Goel is assessed to tax or not and hence, his capacity to give such huge loan is doubtful. Assessment of tax is not ....
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....reover, in remand proceedings, summon u/s 131 issued by the A.O. was served on Shri C. P. Goel and reply was filed by him directly to the A.O. in which he has confirmed that this amount of loan was given by him to the assessee. This also establishes his identity. He also requested the A.O. to depute some body for recording his Statement at his residence but the A.O. did not do so but under these facts, his identity cannot be doubted. Regarding his creditworthiness, this fact that he was enjoying overdraft of Rs. 40,85,584.29 on 26.03.2007 as per Bank Statement of Shri C. P. Goel from Bank of India, Indira Nagar Branch, in our considered opinion, his credit worthiness for advancing loan of Rs. 39.50 Lacs to the assessee also deserves to be accepted. Regarding non providing of detail of Cheque Nos. etc., it is worth noting that it is stated by Shri C.P. Goel in his letter dated 18.09.2014 that he is suffering from Glaucoma and Hernia and was advised complete bed rest. Medical certificate is also enclosed with this letter and therefore only because details of Cheque Nos. etc. could not be provided by him because of his bad health position, no adverse inference can be drawn. Therefore,....
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....o made may kindly be ordered to be deleted." 23. It was submitted by Learned A. R. of the assessee that the details of this amount of Rs. 5,30,715/- is noted by CIT(A) in Para 6.6 of his order. He pointed out that the first amount is Rs. 1,37,217/- payable to Vijaya Bank, RSM Nagar. Thereafter, he pointed out that the bank statement for this bank is available on pages 43 of the paper book and therefore, this addition is not justified. Regarding the outstanding balance of Rs. 86,500/- to HDFC Bank, he drawn our attention to page No. 44 of the paper book where the statement of HDFC is available showing outstanding of Rs. 84,455.84. Regarding outstanding amount of Rs. 93,594/- from Standard Chartered Bank, he drawn our attention to page No. 45 of the paper book where the statement of this bank is available showing outstanding amount of Rs. 97,355.96. He submitted that in the light of these evidences, the addition confirmed by CIT(A) is not justified. 24. Learned D. R. of the Revenue supported the orders of the authorities below. 25. We have considered the rival submissions. We find that in Para 6.6, the CIT(A) has noted down three outstanding amounts of Rs. 1,37,217/- from Vi....
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....) and thereafter, he should make the addition, which were not made in proceedings u/s 143 (3) and are made in the proceedings u/s 147 of the Act and which stands confirmed by us. Once this process is adopted by Assessing Officer, then addition of Rs. 35.25 lac will not figure again in the assessment order u/s 147 of the Act and hence, no separate adjudication is called for regarding this ground No. 9 because this issue is already decided by us partly in favour of the assessee while deciding ground No. 3 & 4 in I.T.A. No.382/Lko/2015. This ground of appeal is disposed of in this manner. 30. In the result, the appeal of the assessee stands partly allowed. 31. Now we take up the appeal of the Revenue i.e. I.T.A. No.383/Lkw/2015. 32. In this appeal the assessee has raised the following grounds: "1. The learned CIT(A)-I, Lucknow has erred in law and on facts of the case in deleting the addition of unsecured loan from others of Rs. 1,28,83,028/- only on the basis of his opinion and without any material fact on record whereas he himself has noted in his order that these liabilities are not verifiable with reference to books of accounts. 2. Tax effect after givin....