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TMI Blog2012 (9) TMI 117X X X X Extracts X X X X X X X X Extracts X X X X ..... (A) evidencing the receipt of the sum received by seller. CIT(A) did not ask the remand report from the AO and also did not confront to the AO the new evidences produced by the assessee. Tribunal on the basis of Natural justice remand this issue back to the AO to verify from the record as to whether the recipients accepted the payment made by the assessee for peaceful possession of the land and accordingly decide the issue, after providing due and reasonable opportunity of being heard to the assessee - Decision remanded back to AO. - ITA No.504/Bang/2011 - - - Dated:- 19-6-2012 - SHRI N.K. SAINI, AND SHRI N.V. VASUDEVAN, JJ. Appellant by : Dr. Pradeep Kumar, Jt.CIT(DR) Respondent by : Ms. Sheetal Borkar, Advocate O R D E R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the aforesaid expenses and noticed from the ledger that the entries were passed in the names of Hariappa (Rs. 18 lakhs), H. Nagesh (Rs.2 lakhs), H. Venkatesh (Rs. 8 lakhs) and Jayalakshmi D. (Rs. 86,540). The AO also noticed from the details produced that the amount was paid to M/s. Venkatalakshmi Traders and other persons in the earlier years and payment of Rs. 3 lakhs was made as early as on 07.07.2002 and 27.01.2003, but now the same was transferred through journal entries. The AO vide letter dated 02.12.2008 asked the following Rs.uestions from the assessee:- a. Please clarify as to how you could develop even before you purchased. b. Further the payments made to other parties were made in earlier years but shown as advance only. P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers. 7. The AO however did not accept the explanation of the assessee for the following reasons:- The assessee has not produced any document to prove that the payments have been made for the purpose of carrying out the said works even before the execution of actual sale deed. There is no pre-sale agreement between the four parties Hariyappa, H. Nagesh, H. Venkatesh and Jayalakshmi D in this regard. There are no copies of communication regarding the nature of developmental works, the cost towards such developmental works and the time frame. It is not clear why the parties would take a risk by undertaking developmental works on behalf of somebody even before entering into proper documentation regarding the same. Also the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ined that in reality the amount paid was for land cost, but accounted as land development as it was registered for lesser amount. 9. The ld. CIT(A) after considering the submissions of the assessee, observed that the amount paid to family members of Shri Hariappa could not be disallowed as the payments made by cheque to Shri Hariappa and family members were not under dispute. He further observed that during the appellate proceedings, the assessee filed affidavits evidencing the receipt of the sum of Rs. 28,86,540 by Shri Hariappa and family members, so it was compensation paid to Shri Hariappa and family members for peaceful possession of the land. The ld. CIT(A) accordingly deleted the addition made by the AO. Now the department is in ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The claim of the assessee was that the said payment was made to the family members of Mr. Hariappa for peaceful possession of the land. In the present case, it appears that the evidences e.g., affidavits and confirmations from the family members of Mr. Hariappa were not confronted to the Assessing Officer by the ld. CIT(A) and no remand report is also available on the record. We therefore, keeping in view the principles of natural justice, deem it appropriate to remand this issue back to the file of the Assessing Officer to verify from the record as to whether the recipients accepted the payment made by the assessee for peaceful possession of the land and accordingly decide the issue, after providing due and reasonable opportunity of being ..... X X X X Extracts X X X X X X X X Extracts X X X X
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