TaxTMI 
TaxTMI 
2017 (11) TMI 1553
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 2. The following observations 1 findings of the learned CIT(A) are incorrect:- (a) The appellant has not filed any documents to show that the transactions claimed by her, as source of Investment in property, were genuine. (b) None of the Bank Statements from where the withdrawals have allegedly been made, have been filed to confirm the genuineness of transactions. (c) No Photo Identification of the persons have been filed and the persons have not been produced to confirm the identity of the persons. (d) Their PANs and Income-tax Returns and Bank Statements have not been filed to confirm the genuineness of the transaction and their capacity to pay. (e) The appellant has failed to establish the genuineness, identity and creditworthiness of the three persons and genuineness of the sale transactions against which the amounts have been received, which in turn has been invested in the purchase of Unit No. 914, Spaze Towers for Rs. 28,89,000/-. (f) The appellant has been unable to explain the source from which the appellant has allegedly received the amounts in its bank account. (g) The explanation offered by the assesse....
X X X X Extracts X X X X
X X X X Extracts X X X X
....een adduced. 4. The various reasons given by the learned CIT (A) to uphold the addition of Rs. 28,89,000/- to the incomer of the assessee are misconceived and incorrect, particularly, when there was no such income earned or expenditure incurred by the appellant in the assessment year under appeal. 5. The appellate order is contrary to the facts and law of the case. 6. The appellant craves leave to add, amend or alter any of the foregoing grounds of appeal at the time of hearing of the appeal." 2. The brief facts of the case are that Assessee filed her return of income declaring income of Rs. 6,59,638/- on 21.3.2012. The return of the assessee was processed u/s. 143(1) of the I.T. Act, 1961 on 09.6.2012. Subsequently, the case of the assessee was selected for scrutiny. However, the assessment has been made at an income of Rs. 36,04,367/- vide assessment order dated 31.3.2014 passed u/s. 143(3) of the Act by makings the additions of Rs. 28,89,000/-. Aggrieved with the assessment order, assessee filed the appeal before the Ld. CIT(A) who vide his impugned order dated 08.5.2015 has dismissed the appeal of the assessee thereby upholding the addition made by....
X X X X Extracts X X X X
X X X X Extracts X X X X
....essee in the assessment year under appeal. In order to support his case, Ld. Counsel of the Assessee has filed a Paper Book containing pages 1 to 51 in which he has attached the copy of statement of income, profit and loss account and balance sheet; copy of General Power of Attorney dated 23.12.2010; copy of agreement to sell and purchase dated 23.12.2010; copy of affidavit; copy of reply to questionnaire dated 28.10.2013; copy of bank account details; copy of Memo of Understanding dated 12.9.2007; copy of letter dated 16.11.2009 of the appellant to M/s Spaze Towers Pvt. Ltd; copy of affidavit of the allottee Sh. Sanjiv Bindra Karta of Sanjiv Bindra (HUF); copy of the receipt dated 7.9.2007 issued by M/s Spaze Towers Pvt. Ltd; copy of affidavit of the appellant; copy of the agreement to sell and purchase dated 23.12.2010; copy of letter dated 1.3.2011 of Sh. Sanjiv Bindra Karta of Sanjiv Bindra (HUF) to M/s Spaze Towers Pvt. Ltd; copy of the cheque given by the assessee to Sh. Sanjiv Bindra Karta of Sanjiv Bindra (HUF); copy of receipt of the cheque in respect of sale of old furniture; copy of the affidavit of Sh. Bal Kishan Vij alongwith Will for the sale of land; and copy of the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....in her bank account on 05.03.2011 (placed at page 22 of the PB). On the aforesaid date, the balance in the aforesaid bank account of assessee was Rs. 26,71,782.16. It is thus more than clear that the amount of investment made was of Rs. 26,71,782/- and not Rs. 28,89,000/- and the same was also met out of her existing bank account which shows the credit balance of Rs. 26,71,782.16. In such circumstances, to conclude that an amount of Rs. 28,89,000/- was an unexplained expenditure is not sustainable in the eyes of law. 6.2 I further note that assessee explained that Rs. 26,71,782.16 was a sum invested by her out of her existing account and that the aforesaid sum is paid out of her balance in the account. It was submitted that the first of the credit of Rs. 20,89,0001- (which is a sum added) represented an amount of receipt on 01.03.2011 on transfer of rights in a space which had been acquired by her from M/s Sanjiv Bindra HUF on 16.11.2009. It was explained that the assessee had acquired such right in the space from M/s Sanjiv Bindra HUF on 16.11.2009 (page 27-28 of PB) which rights had been acquired by M/s Sanjiv Bindra HUF under an MOU dated 12.09.2007 from M/s Spaze Towers Pvt.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tary evidence: a. Confirmation of the vendee to the Mis Spaze Tower P. Ltd. reading as under: Page 38 "This is to inform you that, I have purchase the above said unit no. 618A in sector-49 on Sohna Gurgaon Road, Tehsil and District Gurgaon for Rs. 20,89,0001- (Rupees Twenty Lakh Eighty Jvine Thousand only) as total consideration including other charges paid to you also. I have made full payment to Mrs. Rama Saluja wlof Mr. Ram Avatar Saluja Rio H-63, Kirti Nagar, New Delhi -110015 in her SB Ale No. 151321 with PNB, Branch Kirti Nagar, and New Delhi through RTGS on OFt March' 2011." b. M/s Spaze Tower P. Ltd. as would be seen accordingly endorsed the booking right. Page 39 6.4 Keeping in view of the facts and circumstances of the case, in my opinion, the AO has incorrectly made an addition of the aforesaid sum by invoking the provision of section 69C of the Income Tax Act. However, the assessee has not incurred expenditure in respect of which she has not been able to explain the source of such expenditure and hence the addition of Rs. 20,89,000/- is not tenable as the same amount of Rs. 20,89,000/- sum which is an amount received by the assessee and is thus ful....
X X X X Extracts X X X X
X X X X Extracts X X X X
....oubted as an unexplained credit. The AO has again made no attempt to dispute the receipt through bank account of the vendee to whom the land was transferred which fact has duly been admitted by the transferee. In view of the above, the addition in dispute is hereby deleted. 6.7 With respect to addition of Rs. 3,00,000/- received from sale of old furniture etc. is concerned, I find that assessee has received a sum of Rs. 3,00,000/- on 08.01.2011 by account payee cheque from Mrs. Sashi Aggarwal in respect of the sale of the old furniture, and to support the aforesaid transaction, assessee has also filed the confirmation from Mrs. Sashi Aggarwal who has duly confirmed the purchase of the furniture from the appellant. Copy of the receipt of the cheque from Smt. Sashi Aggarwal has been placed at page 41 of the Paper Book. As per record the assessee was a co-owner of 1/4th share in house no. 62, Kirti Nagar, New Delhi which house property was sold for an aggregate consideration of Rs. 1 crores and assessee share being 1/4th received a sum of Rs. 25 lakhs being 1/4th of the total consideration which was credited in her account on 12.08.2011 when the sale deed was registered (copy of th....