TaxTMI 
TaxTMI 
2019 (9) TMI 718
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.... lakhs and Rs. 14.70 lakhs in the Asstt.Years 2008-09 and 2009-10 which were added by the AO on account of unexplained investment made by the assessee in the property. Facts on all vital points are common in both the cases. 3. Brief facts of the case are that a search under section 132 of the Income Tax Act, 1961 was carried out at the residential premises of the assessee on 11.2.2010. During the course of search, loose paper inventorised as page no.13 of the Annexure A/1 was found and seized. A perusal of this loose paper would indicate that the assessee has made investment of Rs. 10 lakhs and Rs. 14.70 lakhs in the property for purchase of office-space bearing no.206, Ashirwad Paras. On an analysis of this loose paper, the ld.AO has ob....
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....document, it is noticed that the entries mentioned in .the top half are definitely the proposal for the purchase .of office number 206, Ashirwad Paras. As per this, the total area of the property is 1625 ft. The rate is shown at Rs. 2400 per square feet. The total consideration is shown at Rs. 39 Lacs, out of which 60% is to be paid in cash and 40% by cheque. The possession is to be given after 18 months from the date of booking. The payment condition says that 30% is to be paid at the time of booking, 15% at the time of possession and 55% in eight instalments of Rs. 268,125/- each from Feb. 2008 to September 2008. Expenses like AEC, AMG and maintenance and car parking are to be paid extra. Similarly documentation charges and Labour charges....
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....Aishwarya organisers Pvt Ltd the DDs must have got cleared after 1/2/2008. In normal course, a local DD will not take more than two days to clear. If the DD was given by the appellant to Aishwarya organisers Pvt Ltd on 17/172008, then it should have got credited in their account latest by 20/1/2008. However, since as per this page the DDs were handed over to Aishwarya organisers Pvt Ltd on 1/2/2008 only, it must have got cleared after 1/2/2008. Similarly though the cash of Rs. 2.70 Lacs was given to the broker on 19/4/2008, il was handed over to Aishwarya organisers Pvt Ltd on 25/4/2008 as per the noting in the seized document. Similarly the cash of Rs. 300,000/- was given to the broker on 7/7/2008 but given to Aishwarya organisers Pvt Ltd ....
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....10 lakhs is shown as on 26/1/8 and then as on 1/2/2008 the DD is of Rs. 170,000 dated 17/1/2008 are given to the developer. This proves that the appellant had paid Rs. 11.70 Lacs being 30% of the booking amount on 1/2/2008. Therefore, the statement of the appellant that he had not paid any cash towards the purchase of the office is factually incorrect in view of the above mentioned discussion. Further, as per the proposal the appellant is supposed to pay 60% of the total consideration by cash. This fact is also proved as by 8/12/2008 the appellant had paid entire cash component towards the purchase of the said office. Since the total payment of Rs. 24.70 Lacs falls in two different assessment years namely Rs. 10 Lacs in assessment year 2008....
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....ding asset with the assessee. In the absence of corresponding asset, incurrence of such expenditure could not be in the air. He further emphasised that the assessee has disclosed this fact in the statement given to the ADIT under section 131 on 3.5.2010. 5. On the other hand, the ld.CIT-DR contended that the assessee failed to give any documentary evidence about the fact that deal was not materialized. It is a just a bald statement in response to question asked by the ADIT. This statement was given much after the conclusion of search with due consultation with his consultant. In order to substantiate this statement the assessee should file details pointing out when the deal was cancelled, how he has received the refund. He should have pr....
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....ay the money and deal was cancelled." 7. Contentions of the assessee is that once he has taken a stand that deal was cancelled and he got the refund of booking amount then it is to be construed that instalments which were to be paid by the assessee in cash, were not paid. This disclosure in the statement is a corroborative piece of evidence and it was for the assessee to prove that narrations mentioned in the seized paper have not been given effect by the assessee. We have duly considered reply given by the assessee as well as finding recorded by the ld.Revenue authority [CIT(A) extracted (supra)]. The question before us is that a loose paper was found from the premises of the assessee exhibiting the purchase of a property. As per the lo....