9911796707
TMI Blog2010 (8) TMI 594X X X X Extracts X X X X X X X X Extracts X X X X ..... The appeals are discussed with reference to the facts for assessment year 2003-04, which was argued at length by the rival parties. Thereafter, it was stated that the facts for assessment year 2004-05 are identical to the facts for assessment year 2003-04. The two grounds taken in the appeal of this year read as under :-- 1. "The ld. CIT(A) has grossly erred on facts and in law in confirming an addition of Rs. 5,50,000 despite when on examination of the various documents and confirmation of Shri Vimal Sharma, the CIT(A) has observed that the family of Sh. Vimal Sharma is having financial capacity to buy the land and make the payment of Rs. 8,25,000 in two years, but rejected the evidence on certain doubts, without seeking clarifications thereof. 2. The ld. CIT(A) is not justified in confirming an addition of Rs. 5,50,000 whereas in the hearing held on 24-2-2010, it was stated that the assessee had furnished various documents on 15-12-2008 for genuineness of the advance of Rs. 5,50,000 but the AO made assessment on 23-12-2008 without asking any further evidence and assessee was willing to produce Shri Vimal Sharma for examination, the CIT(A) in the order sheet entry had observed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e examined various evidences available on record and came to the conclusion that the accretion to capital account was not satisfactorily explained by the assessee for the following reasons :-- "(a) By furnishing the copy of the revenue records for the lands owned in the name of Shri Sri Ram Sharma, father of the appellant, he is only able to establish that his family owns vast land including the land for which it is claimed that agreement to sale of land was entered into. It does not establish anything more than this. (b) By furnishing copy of the revenue records for the land owned by the family of Shri Anand Sarup (father of Shri Vimal Sharma) and note from Shri Vimal Sharma about his sources of income, he is able to establish that the family of Shri Vimal Sharma is having financial capacity to buy the land and make the payment of Rs. 8,25,000 in two years. They do not establish anything more than this. (c) But the most important documents are the so-called agreement to sale and the confirmation of payment of cash by Shri Vimal Sharma. I would like to make following observations about this so-called agreement to sale : (i) This agreement is not signed on a stamp paper. It i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and immediately succeeding year. Aggrieved by this order, the assessee is in appeal before us. 3. Before us, the ld. counsel for the assessee referred to pages 2 and 3 of the paper book, which are the agreement to sell, written in Hindi. The agreement contains averments to the effect that -- (i) 10 bighas of land situated at village Katyavali is agreed to be sold for Rs. 22.00 lakh; (ii) Rs. 5.50 lakh have been received on 10-7-2002; (iii) Rs. 2,75,000 will be paid in April-May, 2003; (iv) the balance amount shall be paid at the time of execution of sale deed; (v) the buyer is given time up to 10-7-2003 for executing the sale deed; and (vi) in case of failure to pay the balance amount and get the sale deed executed within time, the aforesaid advances shall be forfeited. This agreement is written on a plain piece of paper and it has been witnessed by two persons, whose addresses are not furnished. The agreement has also not been dated. Thereafter, he drew our attention to page 4 of the paper book being confirmation from Shri Vimal Sharma, written in English, stating that he has given Rs. 8.25 lakh in cash to Shri Neeraj Sharma for purchase of land, the sale is yet to be registered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e against the execution of the agreement. The agreement has also not been stamped. Accordingly it has been argued that the explanation tendered by the assessee is unbelievable when all the facts are taken into account. In the light of these facts, it is also not necessary to remand the matter for further verification. The amount was credited to the capital account. The nature and source of credit remains unexplained on a prima facie basis. Therefore, it was argued that the orders of the lower authorities may be confirmed in the matter. 3.2 In the rejoinder, it has been submitted that the documents had been furnished even before the AO, Therefore, the conclusion drawn are inferential in nature. Thus, it was argued that the matter may be restored to the file of the AO or the ld. CIT(A) so that the matter may be examined afresh enabling the assessee to establish the authenticity of the agreement. 4. We have considered the facts of the case and submissions made before us. The facts are that the assessee had credited a sum of Rs. 5,50 lakh in the capital account on or about 10-7-2002. In support thereof, an agreement to sell and a confirmation letter have been filed. Both these docume ..... X X X X Extracts X X X X X X X X Extracts X X X X
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