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TMI Blog2013 (10) TMI 465X X X X Extracts X X X X X X X X Extracts X X X X ..... he land owners, but there is no evidence or material on record to prove conclusively that the assessee has in fact retained certain part of the cash components as his income. The facts of the case may justify the addition in the quantum case, but the parameters to sustain the penalty imposed under section 271(1)(c) of the Act are different, and the assessee is entitled to benefit of doubt in the absence of any concrete evidence to the contrary, and accordingly, facts of the case do not justify the imposition of penalty under section 271(1)(c) of the Act on the assessee – Decided against the Revenue. - ITA No.406/Ahd/2013, ITA No.790/Ahd/2013 - - - Dated:- 4-10-2013 - Shri G. C. Gupta And Tej Ram Meena,JJ. For the Petitioner : Shri P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ars are similar. 3. The learned counsel for the assessee submitted that the AO has admitted in the assessment order that the assessee was never owner of the plots of land in question at any point of time. He submitted that the owners of the plot were illiterate and the assessee was school teacher and was assessed to income-tax since long. He submitted that the power of attorney was executed by various friends and villagers in favour of the assessee, and that the amount of sale price received in cheque or in cash was paid to the owners of the plot. He submitted that the assessee has disclosed additional income during the course of survey so as to avoid costly and prolonged litigation as well as to buy peace of mind. He submitted that there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... condary Section and also carrying on Dalali in land transactions on a small scale. A survey under section 133A was carried out at his residential premises on 12.1.2007 and certain documents showing sale of plots of land by the assessee as power of attorney holder were found and impounded. The assessee has explained that the villagers being illiterate, power of attorney was executed in favour of the assessee by them to facilitate the sale of the plots of land. He has sold total 78 plots to various persons and it is an admitted position that the assessee was not the owner of any of these plots. The assessee has obtained sale price partly in cheques, which were given to the original plot owners, and partly in cash, which has been claimed to ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is practically very difficult to take all the land owners to various government offices, courts, execute declaration/affidavits etc., and hence a power of attorney would substantially facilitate carrying out such acts, by a single person rather than a group of persons, and therefore, no beneficial interest was created in favour of the assessee by executing power of attorney found during the survey. The assessee has claimed that he has acted in good faith and fully cooperated with the department. The assessee has claimed that there is no material to hold that cash components received on behalf of the land owners was in fact belonged to the assessee. The assessee has filed revised return voluntarily and prior to the detection or formation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee has earned the income by way of cash amount received from the land deals. We find that the CIT(A) has passed a well reasoned order on this issue. No contrary material has been brought before us to controvert the finding recorded by the CIT(A) in this case. We find that to decide the legality of penalty imposed under section 271(1)(c) of the Act, the overall contact of the assessee has to be seen. We find that considering the entire factual matrix of the case, it is quite possible that the assessee for his service rendered in the matter of sale of land on behalf of the owners of the plots of land, may have retained or have intention to retain a part of the cash components received by him for sale of plot of land, as the commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X
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