2012 (7) TMI 1183

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....the case is that the assessee is a developer and there was a search and seizure operation on 21.01.1997. During the course of search, it was found that the group entities were not accounting for substantial part of the receipts on account of sale of houses/shops. It was also found that the assessee was heavily indulging into unaccounted sale and purchase of lands which were carried out mostly in cash and were not accounted for. The assessee was maintaining books of accounts as No. II books in addition to regular books of account which revealed that the assessee had received on money on sale of houses/shops and huge unaccounted cash had been withdrawn by the partners. During the course of search, various incriminating documents were seized a....

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.... is in appeal before us. The ld. D.R. vehemently argued that the assessee received cash loans more than Rs.20,000/-. There was no sale of flat/shop to these parties mentioned in the penalty order for cash payment. There is no re-payment on loan and also no adjustment has been made at the time of executing the sale agreement with them. The ld. D.R. relied upon in case of Chaubey Overseas Corporation vs. CIT (2008) 303 ITR 9 (All.) and argued that the penalty u/s 271E for violation of Section 269T any deposit expression has vide meaning and includes trade deposits. Therefore, he argued that the ld. A.O. had rightly imposed penalty u/s 271D of the IT Act whereas from the side of the assessee, learned counsel for the assessee has argued that th....

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....98 u/s 271D and 271E has been deleted which is reproduced as under:- "We have considered submissions of the Ld D.R. and written submissions filed by the assessee and have also perused the order of the Assessing Officer and CIT(A). It is an undisputed fact that the assessee is in the business of construction of houses. It has received advance money. The booking advance as per No.2 books have already been treated as "Deemed Sales" and considered as Income. The booking money received by assessee has been treated as receipts forming part of sales. This fact is also not disputed by Assessing Officer. We agree with the contention of the assessee, that once the booking advance has been assessed as undisclosed income by invoking provisions....