2012 (9) TMI 1109 - AT - Income Tax

Summary

Issues involved: Appeal by Revenue against CIT(A) order related to assessment year 2007-08.

Grounds of appeal:
1. CIT(A) deletion of addition on undisclosed income for flat purchase based on Secretary's statement u/s 132(4).
2. CIT(A) deletion of addition based on non-jurisdictional ITAT decision.
3. CIT(A) deletion of addition based on challenged ITAT decision.
4. CIT(A) deletion of addition based on society's utilization of funds and profit earned.

Facts:
- Dream Land Cooperative Housing Society sold flats with payment details.
- AO believed income escaped assessment due to cash payment for flat.
- AO added cash payment amount to assessee's income.
- CIT(A) deleted addition citing lack of conclusive evidence.
- Only seized document was a computerized sheet from a third party.
- No direct evidence linking cash payment to assessee.
- Sale deed details and seized document discrepancies noted.
- CIT(A) emphasized lack of conclusive link to cash payment.

Decision:
- CIT(A) deleted addition as presumption from seized document not conclusive.
- ITAT concurred with CIT(A) that no direct evidence linked cash payment to assessee.
- AO's case solely based on seized document and third party statement.
- CIT(A) decision upheld due to lack of conclusive evidence.
- Revenue's appeal dismissed, no infirmity found in CIT(A) order.

Counter Objection (C.O.):
- Assessee's C.O. allowed based on Amritsar Bench decision regarding reassessment legality.
- Reassessment quashed as per section 153C, notice u/s 148 deemed illegal.
- Reassessment order rightly quashed by CIT(A) following legal procedure.
- Assessee's C.O. allowed, Revenue's appeal dismissed.

Conclusion:
- Revenue's appeal dismissed, Assessee's C.O. allowed.
- Order pronounced on 25th September, 2012.