TaxTMI 
TaxTMI 
2017 (11) TMI 1207
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....he assessee is an individual. Survey u/s 133A was conducted in the case of M/s Vasudha Shelters, LIC Colony, Gollapudi, Vijayawada on 23.02.2010 and during the course of survey proceedings, it was noticed that M/s Vasudha Shelters has entered into Development Agreement dated 16.06.2008 with Shri Dhanekula Lakshmaiah and others (land owners) for construction of apartments at Gollapudi. Simultaneously, survey u/s 133A was conducted in the premises of the assessee on 23.02.2010 and during the course of survey, certain loose sheets / documents / bank statements were found which were impounded u.s 133A(3)(ia) of the Income Tax Act, 1961. As the assessee has not filed the returns of income, notice u/s 148 was issued on 15.06.2012. The assessee is having savings bank account in State Bank of India, Gollapudi bearing a/c No.10103401208 and another account in M/s Swarna Cooperative Urban Bank Ltd., A/c No.189. During the assessment proceedings, the assessing officer found that the assessee has made the cash deposits as under : Asst. Year Total Cash Deposits (Rs.) 2006-07 28,76,000 2007-08 13,85,000 2008-09 18,50,000 2009-10 61,60,000 2.1. The assessing offic....
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....rect. The assessing officer has examined the submissions of the assessee and since the assessee failed to explain the nature and source of each receipt, the assessing officer made the addition u/s 69 of the I.T.Act. Ld.DR argued that close scrutiny of the bank account of the assessee reveals that the assessee has withdrawn the amounts and after sufficient gap of time made the deposits during the intervening period, the assessee has withdrawn the small amounts also which indicate that there was no cash available with the assessee out of the withdrawals to make redeposit. The conduct of account clearly shows that the assessee has made use of the withdrawn amount and then deposited the cash for which source was not explained. The conduct of account shows that the assessee might have spent the withdrawn amount for unaccounted investments. Though the assessee has claimed that the assessee was in the business, the nature of business was not explained by the assessee and never filed the returns of income. The returns of income were filed only after the issue of notices u/s 148. The huge credits and debits of the cash deposits showed that the assessee is in the unknown business. The assess....
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....ers and vendors was not furnished by the assessee. In the absence of non furnishing the names and addresses of the buyers and vendors, the assessee has become an instrument to evade the income tax by the buyers and vendors of the properties. It is a known fact that lot of unaccounted money was pumped into real estate business. Though the assessee's submission that the assessee had received the amounts from the buyers and vendors is accepted, it is not clear whether the assessee has purchased the property and sold or merely acted as an agent or the assessee has carried on hawala activity for transfer of funds from one hand to another. If it is accepted that the assessee is carrying on business the applicability of the provisions of section 40A(3) and 40(a)(ia) is required to be examined which was not examined either by the assessing officer or by the Ld.CIT(A). Though the assessing officer made the addition of cash deposits in the bank account while applying the peak credit theory, the Ld.CIT(A) has neither conducted the necessary enquiry nor given any opportunity to the assessing officer to find out the true and correct nature of the receipts. The conduct of the account shows that ....
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....cademy which is an educational academy. The property was not used for the purpose of residential purpose, hence the assessing officer viewed that the assessee is not eligible for deduction u/s 54F. Accordingly rejected the claim of the assessee u/s 54F of I.T.Act. The assessee went on appeal before the Ld.CIT(A) and the Ld.CIT(A) allowed the appeal of the assessee. Hence, the revenue is in appeal before us. 9. We have heard the rival submissions and perused the material placed on record. As per the development agreement, the assessee has acquired the residential flat but given it to NRI academy for running the school. The assessing officer was of the view that the assessee had acquired the commercial property but not the residential property and using it for commercial purpose. It is not ascertainable from the information whether the flat in question was residential or not and require further verification at the level of assessing officer. Therefore we remit the matter back to the file of the assessing officer to make further verifications of the impugned property and give finding whether the property given for rent to the school is residential property with all amenities like k....