2025 (7) TMI 952

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....hout application of mind and gross violation of the principle of natural justice and on the basis of borrowed satisfaction. 2. That in view of facts and in circumstance of the case and in law, the Ld. CIT (Appeal) is grossly erred and is not dealing with the material and evidence placed on the record. 3. That, on the facts and circumstance of the case and in law, the Ld CIT(Appeal) erred in confirming the addition of Rs. 1,01,00,000/- under section 69 of IT Act, 1961 for unexplained investment. 4. The action of the Ld. CIT (Appeal) for not considering the actual sale deed (purchase deed for the appellant) dated 25-06-2010 is wrong and bad in law. 5. The assessee reserves the right to add, to amend or to alter the ground of appeal at any time during." 3. The assessee has raised the following additional grounds of appeal:-] "a. On the facts and circumstances of the case and in law, Ld. CITA) has erred in confirming the actions of the Assessing Officer (AO) in reopening assessment under Section 147 of the Income Tax Act 1951 (the Act) merely on the basis of suspicion, surmises and conjecture. The notice issued under Section 148 of the Act and the assessment order passed pur....

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....ear under consideration of the assessee. Hence, he has reason to believe that income to the extent of Rs. 1 crore had escaped assessment for which the assessment was sought to be reopened. The assessee filed objections to the reasons recorded vide letter dated 24.10.2016 stating that there is no nexus between the information received and the formation of belief by the ld AO and that reopening has been made in a mechanical manner. The assessee during the course of reassessment proceedings vide letter dated 20.06.2016 requested the ld AO to provide the copy of the appraisal report and the copy of the deed found in the hard disk and all other documents on which reliance has been placed by him while recording the reasons which enabled him to form a belief that income of the assessee had escaped assessment. In response to the same, the ld AO provided a draft agreement to sell found in the hard disk from Shri Naresh Gupta"s search vide letter dated 17.10.2016. The assessee submitted that the same is not a deed as stated by the ld AO in the reasons recorded and the same did not contain anybody"s signature and the same was undated. Further, the relevant extract of the appraisal report whic....

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.... 2,43,750/- Ram Kishan 200400 03.06.2010 81,250/- Amit Tokas 200307 03.06.2010 81,250/- Neetu 200305 03.06.2010 81,250/- Reema Total   Rs. 29,25,000/-             Surender Pal Singh 000002 23.11.2009 25,00,000/- Birkhe 000004 23.11.2009 12,50,000/- Rankit Tokas 000005 23.11.2009 12,50,000/- Rohit Tokas 000003 23.11.2009 6,25,000/- Ajay Singh 000007 23.11.2009 2,08,334/- Amit Tokas 257215 23.11.2009 6,25,000/- Mahabir Singh 257214 23.11.2009 6,25,000/- Ram Kishan 248020 23.11.2009 2,08,333/- Neetu 248019 23.11.2009 2,08,333/- Reema   Total   Rs. 75,00,000/-   It is important to mention that an amount of Rs, 24,50,000/- was further paid to the vendors by cheques over and above sale deed amount in consideration for the tubewell and constructed area in their respective land as the vendor had backed out, the details of which are given below 000003 23.11.2009 6,25,000/- Ajay Singh 000007 23.11.2009 1,91,666/- Amit Tokas 257215 23.11.2009 6,25,000/- Mahabir singh 257214 23.11.2009 6,25,000/- Ram Kishan 248020 23.11.2009 1,91,667/- Neetu 248019 23.11.....

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....eized/ impounded from the premises of the assessee at all. Hence, the presumption in terms of Section 292C of the Act would lie on Shri Naresh Gupta and the same cannot be extended to the assessee herein. The revenue in the instant case had shifted the onus to explain the said draft agreement to sell seized from the hard disk of Shri Naresh Gupta, to assessee by simply believing the statement of Shri Naresh Gupta that the document found in the hard disk are pertaining to his clients and had proceeded to reopen the case of the assessee u/s 147 of the Act, forgetting the fact that the said draft agreement found in the hard disk was neither signed nor dated and not carrying any evidentiary value. The assessee always pleaded that it had not paid any on-money or cash on account of purchase of property. It pleaded that all the payments made to the venders have been duly reflected in its books and made through properly explainable sources. Even the extent of land mentioned in the draft agreement to sell did not match with the actual extent of land purchased by the assessee. Similar issue came up for adjudication by this Tribunal in the case of Bharat Singh Vs. ACIT in ITA No 2001/Del/2017....