TaxTMI 
TaxTMI 
2020 (9) TMI 1127
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.... under section 131 of the Act on 26th February 2013, during which he was confronted with the fact that the amount received in cash consisted of Rs. 11 lakhs and Rs. 50 lacs recorded on some sheet of paper seized during the course of search in the case of Shri Shashi Kant Aggarwal. The assessee stated that he has not received any money other than Rs. 8,42,000/- as per agreement to sell the property being Flat No.312, Deepali, Nehru Place New Delhi. However, to buy peace of mind, the assessee agreed to surrender the amount of Rs. 11 lakhs and, accordingly, filed the return of income declaring the same income. According to the AO, merely because the assessee denied to have received the amount of Rs. 50 lakhs cannot be accepted. He, therefore, substituted the sale consideration at Rs. 69,42,000/- as against the sale consideration of Rs. 19,42,000/-shown in the return filed in response to the notice under section 148 and, accordingly, determined the total income at Rs. 50,04,461/-. In appeal, the ld.CIT(A) upheld the action of the AO by observing as under:- "9.4 I have carefully considered the observation of the Assessing Officer and submissions of the Appellant and case laws r....
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.... in cash from one person Shri Shashi Kant Aggarwal S/o. Shri Satya Kishore Aggarwal, R/o. B-312, Saraswati Vihar, New Delhi-110034 in the financial year 2007-08. This advance was received by me on 10/11/2007 on account of proposed sale of flat no. 312, Deepali, Nehru Place, New Delhi. Q.8. I am showing you one page of receipt dated 10/11/2007 which appears to be written by your brother Shri Sanjeev Nanda R/o. B-23/3, Shakti Nagar, New Delhi-110007 in which it has been written that Rs.l 1,00,000/- was paid to you in cash by Shri Shashi Kant Aggarwal. (as stated above). Please offer your comments on this documents ? Ans. 1 agree and admit that I received Rs.l 1,00,000/- in cash against the proposed sale of the aforesaid property from Shri Shashi Kant Aggarwal and the paper was written by my brother Shri Sanjeev Nanda. Q.9. Have you offered this amount of Rs. 11,00,000/- for taxation in your return of income ? Ans. No, but I shall compute the tax on the aforesaid amount and pay the same within a reasonable period of time. I will also file a return of income after paying the applicable tax for the assessment year 2008-09 before my assessing ....
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....proved that contents of the document in the form of money receipt dated 10.11.2007 were true and genuine. Appellant has himself admitted that the amount of Rs. 8,42,000/- for sale of property vide registered sale deed was not true and property was actually sold for Rs. 8,42,000/- plus Rs. 61,00,000/- which he received in cash. Further, it is seen that Appellant has never denied in the statement that transaction wras done only for Rs.l 1,00,000/- and not for Rs. 61,00,000/- apart from the amount of Rs. 8,42,000/- shown in the Sale Deed. The money receipt dated 10.11.2007 is very specific and clear that out of Rs. 61,00,000/-, Rs.l 1,00,000/- have been paid and balance Rs. 50,00,000/- is to be paid. Therefore, it is apparent that Appellant has received cash of Rs. 50,00,000/- on later date. Therefore, there is no substance in the claim of Appellant that this amount was surrendered to buy peace. It is not the case of Appellant that he is not able to substantiate his claim with documentary evidence and, therefore, he has surrendered to buy peace of mind. 9.8 Statement of Appellant was also recorded by Assessing Officer on 26.02.2013. Parts of which is reproduced as under :- ....
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....ce by the concerned officer." 9.9 From perusal of the statement dated 26.02.2013, it is apparent that Appellant after almost one year and 10 months, has accepted that he had admitted to surrender of Rs.l 1,00,000/'- in his statement dated 18.04.2011. In answer to query no. 7 he has confirmed that receipt of Rs.l 1,00,000/- was admitted in the statement recorded on 18.04.2011 and he has also confirmed that receipt was by his brother Sh. Sanjeev Nanda. It is also to be noted that Appellant has not denied that there was no transaction of Rs. 61,00,000/- and that transaction was done only for Rs. 11,00,000/- and not for Rs. 61,00,000/-. Appellant has further stated that surrender was to buy peace of mind however, in answer to query no. 7 it was pointed, out to the Appellant that he has not stated so in statement recorded on 18.04.2011. Appellant has no submission to make except that he was not well and not prepared. 9.10 Appellant is also wrong in contending that there is no factual or legal basis for any additional consideration as document in the form of money receipt dated 10.11.2007 was seized during Search and he has admitted that the document pertai....
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....orrect. Appellant has not produced any material to show that the statement made by him was incorrect. 9.14 It is further seen that Investigation Wing had recorded the statement of Appellant on 18.04.2011 and after more than two years, Assessing Officer recorded another statement of Appellant on 26.02.2013 in which he has accepted that during statement recorded on 18.04.2011 he had surrendered Rs.l 1,00,000/-. This statement was after one year and ten months, therefore, Appellant had thought over the same for more than a year and 10 months and then he has confirmed his surrender made in the statement dated 18.04.2011, Therefore, there is no substance in the claim of Appellant. 10. In the result, the appeal is dismissed." 3. Aggrieved with such order of the CIT(A), the assessee is in appeal before the Tribunal by raising the following grounds of appeal:- "l(i). That on the facts and circumstances of the case, the CIT(A) is not justified in confirming addition of Rs. 50 lacs as part of sale consideration without any factual and legal basis. (ii) That the addition was made merely on the basis of photocopy of dumb sheet of paper, which is ....
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....ature of the assessee. Since the said papers are unsigned and unauthenticated, the entries therein are not sufficient to fasten liability on the assessee. He submitted that the AO also did not conduct any further enquiry by summoning the buyer as named in the alleged seized paper although their address was very much available with the AO. Referring to the statement recorded by the Investigation Wing under section 131 of the Act on 18th April 2011, the ld. counsel for the assessee submitted that vide reply to question number 7, the assessee had submitted that he had received an amount of Rs. 11 lakhs in cash from Shri Shashi Kant Aggarwal during financial year 2007-08 on account of proposed sale of Flat No.312, Deepali, Nehru Place New Delhi. He submitted that the receipt dated 10.11.2007, which was written by the brother of the assessee Shri Sanjeev Nanda, was confronted to the assessee which he had admitted and to buy peace of mind had agreed to pay taxes on Rs. 11 lakhs. However, there is no evidence of receipt of any cash of Rs. 50 lakhs. Even before the AO, during the assessment proceedings also, the assessee categorically had denied the receipt of any further amount. Therefore....