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2023 (5) TMI 1059
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....pite of being provided sufficient opportunities, the assessee did not explain the debit/credit entries appearing in his bank account. 3. On the facts and in the circumstances of the case, the Ld.CIT(A) has not appreciated the facts and erred in law that the assessee was asked to submitted the details of debit/credit entries of his bank account from the very beginning through detailed questionnaires. 4. On the facts and in the circumstances of the case, the assessee himself accepted that he does not maintain regular books of accounts. 5. On the facts and in the circumstances of the case, the Ld.CIT(A) has not provided opportunity to the AO and no remand report u/s 46A of the Act has been called for from the AO in this case so as to counter the new evidences, if any filed by the assessee before the Ld. CIT(A). 6. On the facts and circumstances of the case, the Ld. CIT(A) has not appreciated the facts and erred in law that on the issue of addition of Rs. 4,59,50,000/- on account of unexplained investment no evidence was filed before the AO during the assessment proceedings in the form of identity, creditworthiness of the lender." 3. The brief fac....
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....eal before us by the revenue. 9. Excerpts from the Assessment Order: "2. Information was received in this case about huge amount of cash in possession of Sh. Sukhbir Shokeen at his residence A-71, Pachhiya Mohalla, Chawla, Delhi 71. Accordingly, warrant u/s 132 of the Act as issued in respect of the above premise. During the course of search proceedings u/s 132 of the Act on 13.12.2016, cash seizure of Rs. 64,84,000/- (including new currency of Rs. 11.32 lacs) was made. Sh. Sukhbir Shokeen in his statement stated that the above mentioned cash was his unaccounted income of commission/brokerage received from the real estate business during the F.Y. 2016-17. He further stated that this unaccounted income has been generated in the form of commission received from the sale/purchase, mutation, lease deed, rent agreements and this was received by him from different parties in the form of cash. He further stated that he does not remember names of those parties from whom he has received the commission income in cash and does not keep any record of sale/purchase, mutation, lease deed and rent agreements. His statements were recorded u/s 132(4) of the Act on 13.12.2016 & 11.02.201....
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....ccounts have not been maintained by the assessee over the years under consideration, it is not possible for the assessee to recall these entries. 5.3 The assessee is engaged in the sale and purchase of properties as a broker and deals in real estate and agricultural land. While explaining the substantial cash credits in his above mentioned bank accounts, he has submitted that the assessee mostly acts as a broker for trading in agricultural land. The assessee also trades in agricultural land himself and submitted that his family owns ancestral agricultural land approximately 20 acres in Village Chhawla. On perusal of the documents submitted by the assessee, it is seen that during the years under consideration, the assessee has been actively engaged in plotting and sale of this land to different parties. During A.Y. 2016-17, there are substantial credits (including the cash deposits) in his different bank accounts and the assessee has not been able to explain how the income figure for different assessment years has been worked out in absence of any regular books of accounts maintained by him. 6. Special provision for computing profits and gains of business on presum....
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.... income for A.Y. 2017-18. In the preceding years as well as the instant A.Y. 2016-17, the income declared are low as compared to the income declared in A.Y. 2017-18 consequent to the search. Thus, it is apparent that the assessee was having substantially higher income over the different assessment years under consideration. Therefore, income declared by assessee w.e.f. A.Y. 2011-12 to 2016-17 are not acceptable and are re-worked out. The following credits have been observed in different bank accounts of the assessee in his name/joint name during the years under consideration. A.Y. Total credits Cash deposits 2011-12 1,02,28,513/- 82,00,000/ - 2012-13 91,01,238/- 36,08,000/- 2013-14 16,10,31,054/- 78,90,000/- 2014-15 3,04,57,655/ - 40,01,000/- 2015-16 18,53,.63,522/- 35,73,000/- 2016-17 15,67,91,059/- ( less Rs. 4,59,50,000/- considered separately as unexplained investment for purchase of properties) 13,50,000/- 2017-18 5,85,20,118/- 32,00,000/- 6.4 The assessee being a broker in real estate business and having no other substantial source of income than the real estate business, these credits repr....
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....r Sehrawat received in assessee's HDFC a/c. Further, amounts of Rs. 1,00,00,000/- and Rs. 25,00,000/- have been transferred from assessee's own a/c in SBI to assessee's a/c in HDFC Bank. 7.4 As discussed above, additions @8% of the gross receipts in the form of credits entries in his different bank accounts is also being made, therefore the above mentioned amounts paid by the assessee from his bank accounts for the purchase of properties have been excluded from the gross credits entries considered for calculating the income of the assessee @8% u/s 44AD of the Act. In view of the discussion made above, the payments made by the assessee for the purchase of above properties have remained unexplained and are added to the income of the assessee u/s 69 of the Act for A.Y. 2016-17. (Addition Rs. 4,59,50,000/-)" 10. Before us, the ld. AR supported the order of the ld. CIT(A) whereas the ld. DR supported the order of the Assessing Officer. 11. Heard the arguments of both the parties and perused the material available on record. 12. We find that the ld. CIT(A) deleted the addition holding that the assessee was issued questionnaire on 26.12.2018 and the assessment h....
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....ent 24.04.2015 HDBDEBIT 11361 EPFO PDC Sector-23 SIGN.VERF. 102.00 9,25,315.93 Bank Charges 07.05.2015 DEBIT 04328 CCPC (CTS) NEW ECSDebitHDFC Bank 1,61,359.00 7,63,956.93 Loan Installment 14.05.2015 CAS PRES CHQ 04328 CCPC (CTS) NEW CA Multicity 7,00,000.00 63,956.93 Salary and expenses Cheque 14.05.2015 CSH DEP 11361 EPFO SECTOR-23 CASH DEPOSIT SELF 5,00,000.00 5,63,956.93 09.06.2015 DEBIT 04328 CCPC (CTS) NEW ECS Debit HDFC Bank LI 1,61,359.00 4,02,597.93 Loan Installment 20.06.2015 CAS PRES CHQ 04328 CCPC (CTS) NEW CA Multicity Cheque 5,240.00 3,97,357.93 Accounting Charges 23.06.2015 DEP TFR 04430 PAYMENT SYSTEM RTGS HDFCR52015062364 764 592 J S B AUTO P STATE BANK OF INDIA TRF FR 3199856044300 RTGS 592 J S B AUTO P STATE BANK OF INDIA HDFCR52015062364 764 25,00,000.00 28,97,357.93 Advance for property JSB Auto 23.06.2015 DEP TFR 04430 PAYMENT SYSTEM RTGS YESBR52015062300 003 849 J S B AUTO P STATE BANK OF INDIA TRF FR 3199859044307 RTGS Y....
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....p;35,00,056.00 1,04,72,841.93 Purchase of Property 3 24.07.2015 REMT THRU CHQ 11361 EPFO Sector- 23 CA Multicity Cheque RTGS SBINR5201507241 7933965 Prem Wati State Bank of India 30,00,056.00 74,72,785.93 Purchase of Property 4 27.07.2015 CHQ DEP 04328 CCPC (CTS) NEW BOB 9,00,000.00 83,72,785.93 Advance for property Hari Om Rana 27.07.2015 CHQ DEP 04328 CCPC (CTS) NEW HDF 7,00,000.00 90,72,785.93 Advance for property Ved Prakash Rana 27.07.2015 CHQ DEP 04328 CCPC (CTS) NEW INB 9,00,000.00 99,72,785.93 Advance for property Raj Pal Singh 27.07.2015 CHQ DEP 04328 CCPC (CTS) NEW BOB 9,00,000.00 1,08,72,785.93 Advance for property Ved Prakash Rana 07.08.2015 DEBIT 04328 CCPC (CTS) NEW ECS Debit HDFC Bank LI 1,61,359.00 1,07,11,426.93 Loan Installment 24.08.2015 REMT THRU CHQ 11361 EPFO Sector- 23 CA Multicity Cheque RTGS SBINR5201508241 9131880 Stock Holdin State Bank of India 8,79,056.00 98,32,370.93 Payment of stamp duty Property 2 26.08.2015 REMT THRU CHQ 11361 EPFO Sector....
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....28.00 60,87,272.43 Payment of stamp duty Property 1 Date Dr. Amt Cr. Amt Balance Opening Balance 19,37,000.00 15.04.2015 FT-DR- 03381530002362 - Ram Karan Rana 5,00,000.00 14,37,000.00 Advance Given Ram Karan Rana 18.04.2015 RTGS CRUTIB0000096- ASHA SINGLA-SUKHBIR SHOKEEN- UTIBR52015041800 034884 1,00,00,000.00 1,14,37,000.00 Refund of advance Asha Singla 18.04.2015 RTGS CRUTIB0000096- ASHA SINGLA-SUKHBIR SHOKEEN- UTIBR52015041800 034824 1,00,00,000.00 2,14,37,000.00 Refund of advance Asha Singla 22.04.2015 FT-CR- 03381530002362- RAM KARAN RANA 5,00,000.00 2,19,37,000.00 Refund of advance Ram Karan Rana 22.04.2015 RTGS CRUTIB0000096- ASHA SINGLA-SUKHBIR SHOKEEN- UTIBR52015042200 023332 2,00,00,000.00 4,19,37,000.00 Refund of advance Asha Singla 08.05.2015 RTGS DR- SCBL0036086- Jagdish Yadav- Dwarka II- HDFCR52015050862 971654 2,00,00,000.00 2,19,37,000.00 Repayment of advance taken from Jagdish Yadav on 24.03.2015 11.05.2015 RTGS DR- CO....
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....1930001030- Kailash Gahlot 25,00,000.00 4,84,600.00 Purchase of Property 1 28.03.2016 Program Management fee Jan-Mar 16 230316 114.50 4,84,485.50 Bank Charges 14. We find that the ld. CIT(A) deleted the addition on the grounds that the sources of the entire amounts, the credits and debits in the bank account have been duly explained. We find that the amounts have been received against purchase of properties from various persons namely, Ms. Sarika Malu, Sh. Vikram Burman, Sh. Sunil Kumar, Sh. Jasbir, Ms. Premwati, Sh. Ram Karan Rana, Sh. Jagdish Yadav, Ms. Asha Singhla, Sh. Sudesh Gahlot. The bank statement also consists of amounts received and refunded to various people in total five properties have been purchased and payment of stamp duty is also reflected in the same bank account. 15. The assessee also submitted the documentary evidence such as confirmation, PAN details, copies of accounts etc. to substantiate the above source of funds. No adverse inference has been drawn on such explanations by the Assessing Officer. However, it is seen that the Assessing Officer has passed a remark that there exist other transactions of equivale....