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TMI Blog2013 (2) TMI 176X X X X Extracts X X X X X X X X Extracts X X X X ..... Addition by AO of an amount which represented repayment of amount out of undisclosed resources - Whether CIT(A) and ITAT was right in deleting the addition made by AO – Held that:- Amount was re-paid out of the amount received as advance from one of the purchaser (in above para) of commercial plot - Also assessee received a cheque, from the person to whom amount repaid, in lieu of amount repaid - Concluded that repayment was made not from the undisclosed resources - Decided against the Revenue. - ITA NO 505/06 - - - Dated:- 27-4-2011 - ADARSH KUMAR GOEL and AJAY KUMAR MITTAL JJ. For Appeellent Tejinder K. Joshi, Standing Counsel. For Respondent K.L. Goyal. Senior Advocate, assisted by Sandeep Goyal, Advocate. Ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oceedings, it was found that the assessee had also shown an amount of Rs.3,25,000 as liability towards one Ajit Singh in the balance-sheet as on March 31,1993. This amount was stated to be an advance consideration received from him on account of sale of a commercial plot No.107 situated in Chhoti Baradari, Patiala. By means of producing a copy of the agreement to sell, the assessee showed that as per the terms thereof, the sale price of the plot was determined at Rs.6,50,000 and the purchaser had paid the amount of Rs.3,25,000 in advance. It was further stipulated in the agreement that the transfer of plot was to be made by December 31, 1995. During the proceedings, the asses-see changed his stand and gave different version. 4. The pleas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as on March 31,1993 ? (b) Whether the deletion of addition of Rs.1 lakh by the Commis-sioner of Income-tax (Appeals) and the Tribunal on account of payment to Shri Megh Chand Sharma outside the books of account was justified ? 7. Taking up the first issue, it would, in the first instance, be advantageous to refer to the findings recorded by the Tribunal with regard to the afore-said addition in paragraph 8 of its order which are as under : "8. We have considered the rival contentions carefully and gone through the material available on record. In the instant case,it appears that the assessee had shown liability towards Shri Ajit Singh in his balance-sheet, the liability was claimed to be an advance against the commercial plot. Howe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, Shri Ajit Singh, was not a man of means. We, therefore, considering the totality of the facts, are of the view that the learned Commissioner of Income-tax (Appeals) was justified in deleting the addition made by the Assess-ing Officer when the assessee discharged the onus cast upon him." 8. The Tribunal on appreciation of evidence had come to the conclusion that the assessee had received an advance of Rs.3,25,000 from Shri Ajit Singh for purchase of a plot from the assessee. Further, Shri Ajit Singh was produced before the Assessing Officer who had admitted having made payment to the assessee and that he was man of means. It was, thus, con-cluded that the amount which was shown in the balance-sheet against the name of Shri Ajit Singh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heque of the same amount received from Shri Megh Chand Sharma had not been rebutted by the Assessing Officer. Therefore, we are of the view that the learned Commissioner of Income-tax (Appeals) rightly deleted the addition made by the Assessing Officer." 10.The Tribunal, while affirming the findings of the Commissioner of Income-tax (Appeals), had accepted the explanation of the assessee that the amount of Rs.1 lakh which was paid to Shri Megh Chand Sharma in cash was out of the amount received from Shri Ajit Singh and that Shri Megh Chand Sharma had issued cheque to the assessee in lieu thereof. Learned counsel for the Revenue could not demonstrate that the aforesaid finding of fact recorded by the Commissioner of Income-tax (Appeals) an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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