TaxTMI 
TaxTMI 
2024 (12) TMI 1261
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....the necessary approval from PCIT, Gurgaon vide letter No.F.N.CIT/GGN/TECH/2017-18/7185. Notice under section 148 of the Act was issued on 22.03.2018. In response to notice, assessee submitted reply on 22.10.2018 and furnished ITR for the year 2011-12 on 20.04.2018 declaring income at Rs. 1,81,140/- from other sources in response to notice under section 148 of the Act and requested reasons for reopening under section 148 of the Act. Reasons for reopening the case and notice under section 142 was sent on 20.11.2018. Assessee filed reply and furnished the list of members from whom assessee society received cash amounting to Rs. 66,38,450/-. Show-cause notice dated 10.12.2018 was issued. Assessee did not submit any reply and on completion of proceedings, addition of Rs. 66,38,450/- was made vide order dated 17.12.2018 by learned AO. 3. Aggrieved by the order of learned AO, assessee/appellant preferred appeal before the CIT(A) which was partly allowed. 4. Being aggrieved, appellant/assessee preferred present appeal. 5. Learned Authorized Representative for the assessee/appellant submitted that ground no.1.1 is not pressed by the assessee. 6. Learned Authorized Representative for the....
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....y its members for construction of flats for and on their behalf, when such amounts had been duly reflected in the ledger accounts of the concerned members in the books of account maintained by the society and confirmed by the members, and if any action is warranted, it should be taken against the members who made payment to the society. 12. Learned Departmental Representative for the Department of Revenue submitted that learned AO and learned CIT(A) have passed reasoned orders. 13. From examination of record in light of aforesaid rival contentions, it is crystal clear that appellant/assessee is a Cooperative Group Housing Society registered under "The Haryana Co-operative Societies Act, 1984" and incorporated on 22.05.2003 with the main objective to acquire land and construction of residential flats. Learned CIT(A) confirmed the addition under section 69A of the Act to the extent of Rs. 32,00,000/- on account of cash received from the members of the society out of the addition of Rs. 66,38,450/- made by the learned AO. The assessee had 44 members. Learned CIT(A) had not accepted explanation regarding deposit of Rs. 30,00,000/-. The amount deposited out of cash received from follo....
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....society and had been contributing funds to the society for his flat. Copies of his ledger accounts in the books of the assessee society are enclosed (PB-Pages-53 to 57). He has contributed total amount of Rs. 41,64,000/- during F.Y. 2010-11 consisting of Rs. 36,64,000/- in cash and Rs. 5,00,000/- through cheque. His name was duly appearing at S. No. 6 in the list of members as on 31.03.2011 duly verified by Sub-inspector (Audit), Cooperative Societies, Gurgaon (PB-Page-18). Sh. Ashish Doon has also furnished an affidavit (PB- Pages 51 & 52) for contribution of total cash of Rs. 36,64,000/- during FY 2010- 11 for his flat against which society has issued receipts. As can be seen from his ledger accounts, he had contributed total amount of Rs. 50,26,400/- for his flat up to the F.Y. 2012-13. Conveyance Deed of the flat was registered in his favour on 18.07.2014 (PB-Pages 58 to 66) for a consideration of the same amount i.e. Cost of land : Rs. 12.94 lacs Cost of construction : Rs. 37.32 Lacs Total : Rs. 50.26 Lacs Thus, the cash of Rs. 36,64,000/- was received from Sh. Ashish Doon during the FY 2010-11 for his flat which has been confirmed by him in his affidavit. The Ld.....
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....ference: to Mehta Parikh and Co. v. CIT [1966] 30 ITR 181(SC) is important in above context. Considering the totality of facts and surrounding circumstances, it is abundantly clear that Sh. Ashish Doon had contributed Rs. 36,64,000/- in cash to the society towards cost of his flat during FY 2010-11. Conveyance Deed has also been registered in favour of Sh. Ashish Doon for the flat by the society clearly demonstrating that this amount was received from Sh. Ashish Doon by the assessee society as contribution for construction of his fat. So, the addition of Rs. 22,00,000/- of cash contributed by the member Sh. Ashish Doon is required to be deleted. 13.3 Regarding Shri Karan Singh : Rs. 5,00,000/- Sh. Karan Singh was a member of the society and was contributing funds to the society for his flat. He has contributed total cash amount of Rs. 11,00,000/- during F.Y. 2010-11 consisting of Rs. 5,00,000/- in his account and Rs. 6,00,000/- for account of his daughter Nandini for obtaining membership for her. Copies of ledger accounts of his daughter Nandini in the books of the assessee society are enclosed (PB-Pages 43 & 44) and his ledgers are also enclosed (PB-Pages 45 to 50). His name ....
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....e assessee society had refunded the total contribution to him including amount of cash contributed by him. So the addition of Rs. 5,00,000/- of cash contributed by the then member Sh. Karan Singh is deleted. 14. Learned Counsel for the assessee submitted that as per section 251(1)(a) of the Act, in appeal against an order of assessment, the CIT(A) may confirm, reduce, enhance or annul the assessment, but there is no such power provided by the law that the Ld. CIT(A) could change the provision of law qua the item of which the assessment was made. Thus, in the absence of such power, Ld. CIT(A) could not have treated the addition made in the assessment order u/s 69A of the Act. Hence, the addition upheld by the Ld. CIT(A) of Rs. 32,00,000/- u/s 69A of the Act is liable to be deleted. Reliance was placed on following two judgments: (i) Prashant Pitti vs. ACIT, Central Circle-4, Delhi in ITA No. 3032/Del/2022 for A.Y. 2016-17 order dated 07.02.2024 (ITAT-New Delhi) (ii) Toffee Agricultural Farms (P.) Ltd. vs. ITO [2022] 141 taxmann.com 429 (Delhi-Trib.); relevant portion of the same is reproduced as under: "As per section 250 of the Act, the learned CIT(Appeals) is empowered to m....