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TMI Blog2012 (12) TMI 636X X X X Extracts X X X X X X X X Extracts X X X X ..... it is seen that the assessee has explained that the amount of Rs.55 lakhs given as advance to the prospective seller of the land was pooled together from different persons by his father and the entire amount was paid by his father i.e. Rs. 25 lakhs by cheque from the joint account held with the assessee and balance amount of Rs.30 lakhs by way of cash by his father to the prospective seller Sri Saibabaiah. It is also a fact available on record that the receipt was executed by Sri Saibabaiah in the name of the assessee’s father, Sri N. Ramanaa Reddy. However, the source of this amount of Rs.55 lakhs stated to have been pooled together from different persons, have not been properly enquired into. No material has been brought on record with re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or other asst. Yeas i.e., 2003-04, 2006-07 and 2009-10. 3. Briefly the facts are, the assessee apart from sub-contract works also earns income under the head business from dairy farming, money lending etc. A search and seizure operation was carried out u/s 132 of the Act in the residential premises on 20-6- 2008. As a consequence of the search and seizure operation, the AO issued notice u/s 153A calling for return from the assessee. In response to the notice issued by the AO, the assessee also filed its return. The AO thereafter issued notice u/s 143(2) read with section 153A for completing the assessment as a result of search. In the assessment proceedings relating to the impugned assessment year, the AO rejected the books of accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e absence of any incriminating material, the AO is not justified in rejecting the books of account and estimate income in proceedings initiated u/s 153A, when regular assessment has been completed accepting the books of accounts. We therefore find no infirmity in the order passed by the CIT (A) and accordingly uphold the same. Hence the grounds raised by the revenue are rejected. 5. In the result, the appeal of the Revenue is dismissed. ITA No.1824/Hyd/2011- Assessment Year 2008-09:- 6. The learned AR for the assessee submitted that tax effect in this appeal is below Rs. 3 lakhs. In view of the Instruction No.3 of 2011 (F.No.279/Misc.142/2007/ITJ), dated 9th February, 2011 issued by the Central Board of Direct Taxes, the present appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It was observed by the AO that there are contradictions in the statements given in the case of Sri Venugopal Reddy and his Brothers. Even so far as the amount of Rs.25 lakhs advanced by way of cheque, the AO found that a cash of Rs.25 lakhs was deposited in the assessee s joint account with his father and on the same date Rs.25 lakhs was issuedthrough cheque to the prospective seller Sri Saibabaiah, Dargamitta, Nellore as advance. On the aforesaid conclusion, the AO added the amount of Rs.55 lakhs to the income of the assessee as unexplained investment u/s 69 of the Act. The assessee being aggrieved filed an appeal before the CIT (A). 8. In course of hearing before CIT (A), the assessee contended that neither there is any material found ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve seller of the land has backtracked from the transaction and returned back the advance amount of Rs. 55 lakhs by way of cheque drawn on Andhra Bank paid through RTGS mode on line. It was also found by the CIT (A) that before the assessment order u/s 143(3) read with section 153 was completed, the entire advance amount of Rs.55 lakhs was returned back by the prospective seller. The CIT (A) therefore held that the AO has made the addition without taking into consideration the materials and evidences produced before him. He therefore deleted the additions made by the AO. 9. We have heard rival submissions and perused the materials on record. On perusal of materials available on record, it is seen that the assessee has explained that the am ..... X X X X Extracts X X X X X X X X Extracts X X X X
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