TaxTMI 
TaxTMI 
2013 (7) TMI 1019
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....dated 31.12.2007 and the total was assessed at Rs. 4,37,87,140/-. Assessee carried the matter before CIT(A). CIT(A) vide order dated 18.08.2009 granted partial relief to the assessee. Aggrieved by the aforesaid order of CIT(A) both Assessee and Revenue are in appeal before us. The Assessee has also filed cross objection. 4. The grounds raised by the Assessee in ITA No. 3142/Ahd/2009 reads as under:- 1 Learned CIT (A) has erred in law and on facts in confirming addition made by AO of Rs. 3, 50, OOO/- u/s 68 of the act which is wholly unsustainable in law and on facts when the appellant has established the genuineness of one of the party by submitting the confirmation of a/c as well PAN no. of the depositor. Both the lower authorities have further erred in ignoring the submission made by the appellant to issue summons u/s 131 of the act to the second party in light of non co - operation of the depositor. The addition being without any merits and justification requires to be quashed. 2 Learned CIT (A) has grossly erred in law and on facts in confirming addition of Rs. 25, 52, 780/- made by AO of unaccounted investment in land admeasuring 62, 550 sq. meters at bloc....
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....ot No.445 in respect of which Shri Indravadan Prajapati admitted receipts of on-money and shown in his return and also in respect of addition of Rs. 25,52,780/-has been confirmed by Ld. CIT(A). 5. On the facts and in the circumstances of the case and in law, the CIT (A) ought to have upheld the order of the A.O. 6. It is, therefore, prayed that the order of the CIT (A) be set aside and that of the A.O. be restored to the above extent. 6. The grounds raised by Assessee in CO. NO. 270/Ahd/2009 are in support of the order of CIT(A). Since both the appeals are interconnected, all the appeals are considered together. 7. First grounds with respect to addition of Rs. 3,50,000/- under Section 68. 8. During the course of assessment proceedings, the assessee was asked to furnish confirmation of all the persons appearing as creditors in the books. Assessee did not produce confirmation for Rs. 1,50,000/- received from Manish Patel and Jyoti Patel and Rs. 2,00,000/- from P.B. Dave. In the absence of confirmation, Assessing Officer concluded that the parties were not genuine and the Assessee has failed to prove the genuineness and creditworthiness of the parties. He ac....
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....account of unaccounted investment in land:- During the course of assessment proceedings, Assessing Officer noticed that Assessee has purchased six different piece of land in Village Nimlai and Parsoli in District Navsari. The description of land is as under:- S. No. Date Block No. Area Seller 1 23/11/05 171 85,605 Shardaben Hiralal Prajapati Indrawadan Hiralal Prajapati 2 25/11/05 445 62,550 Indrawadan Hiralal Prajapati Manisha I. Intwala 3 12/12/05 171 1,65,070 Vatika Developers 4 28/12/05 40 27,471 Arunkumar Hiralal Chokshi 5 3/2/06 444 58940 Paras Shah 6 3/2/06 446 17,368 Paras Shah 13. During the course of search proceedings summon were issued to Indrawadan Prajapati (Intwala) who had sold lands at serial no. 1 and 2 to the Assessee and his statement was recorded on 4.04.2006 wherein he admitted to have sold the land to Assessee at Rs. 54 per sq. mtrs, though the documents was prepared for Rs. 19.15 per sq. mtrs. It was further stated by him that Rs. 25,52,780 being the differential amount was the "on-money" which was accepted as his unaccounted inco....
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....y payment for purchase of land at block No.445 measuring 62550 sq.mts. However, in my view the Assessing Officer is not justified in applying the rate of Rs. 54 per sq.mt. for all other lands purchased from other parties when there is no evidence in related to purchase of those plots. Accordingly, the addition is restricted to Rs. 25,52,780/- and the appellant is allowed for the amount of Rs. 1,20,84,360/-. 14. Aggrieved by the aforesaid order of CIT(A), the Assessee is now in appeal before us. 15. Before us, the learned A.R. submitted that the Assessing Officer had relied on the statement of Shri Intwala wherein he had allegedly admitted who have received "on-money" from the Assessee on sale of land. The Ld. A.R. submitted that during the course of assessment proceedings, the Assessing Officer did not issue the copy of the statement of Mr. Intwala and further neither an opportunity to cross-examine Mr. Intwala was given to the Assessee. It was therefore submitted that the addition only on the basis of statement without any corroborative evidence cannot be made. The learned A.R. further submitted that the various High Courts have held that any finding of the enquiry conducted....