2018 (12) TMI 2033

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....000/- imposed by the JCIT for violation of provision of Section 269SS of the It Act, 1961." That the appellant craves leave to add, amend or alter the grounds of appeal on or before the date of appeal is finally heard for disposal." 2. The assessee is an individual and engaged in the business of hotel and agricultural activities. The assessee e-filed his return of income on 29/3/2015 declaring total income of Rs. 73,76,400/-. While completing the assessment U/s 143(3) of the Income Tax Act, 1961 (in short the Act) on 19/12/2016, the Assessing Officer assessed the total income of Rs. 1,58,32,530/-. While passing the scrutiny assessment, the Assessing Officer initiated the penalty proceedings U/s 271D of the Act in respect of the ....

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.... the payments made prior to the agreement, it cannot be accepted that these payments were made only as advance for sale of property. The assessee has prepared this document which is an afterthought to give a colour to the transaction of loan as advance against the property. This fact is also supported by the development that the transaction of sale of property never materialized and even the assessee has not claim to have repaid the said amount rather the assessee has claimed that since the purchaser has not paid the balance amount of sale consideration, therefore, the assessee forfeited the said amount of Rs. 1.00 crore. Even otherwise, the advance received by the assessee falls under the definition of loan or deposits as per the explanati....

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....nst the assessee before the Additional District & Sessions Judge, Behror for getting the sale deed executed as per the agreement. The suit is still pending before the Court. Thus, the present transaction is not loan or deposit but it was an advance received for sale of the property and therefore, does not fall in the ambit of provision of Section 269SS of the Act. The ld AR has further submitted that explanation to Section 269SS of the Act has been inserted w.e.f. 01/6/2015 and therefore, the same is not applicable for the assessment year under consideration. He has supported the order of the ld. CIT(A). 6. We have heard the rival contentions and perused the material available on the record. The Assessing Officer has observed that the am....