9911796707
TMI Blog2017 (7) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... the business of purchase and sale of lands. During the course of survey proceedings conducted in the case of M/s. Surakshita Homes on 04-09-2008, certain documents were found and impounded relating to the transaction of purchase of lands by the said firm. One of the transactions involved assessee. A Memorandum of Understanding [MoU] dt. 18-09-2006 between the land owners M/s. Sidhartha Estates represented by Smt.C. Amaravathi as vendor and assessee as an agreement-holder for purchase of lands at Aushapur from the said Sidhartha Estates as confirming party and M/s. Surakshita Homes as buyer was found. As per the said MoU, assessee has received an amount of Rs. 40 Lakhs towards repayment of consideration paid by assessee to the land owners vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e A.O and the submissions of the appellant. Briefly stated, the facts of the case reveal that the appellant, being in the business of purchase and sale of lands, have entered into an agreement for sale with M/s. Sidhartha Estate represented by Mrs. C. Amaravathi and Mr. C. Jagdiswar Rao, for purchase of lands at Aushapur, by paying the amount of Rs. 20,00,000/-. However, the land owner shown to have sold the same property to M/s. Sri Surakshita Homes, for a higher consideration, for which the appellant has filed civil suit, against the land owner, for enforcing the specific performance of agreement for sale. In this context, the three parties involved in the matter, i.e. Mr. Vijender Reddy, the appellant, as an agreement holder, M/s. Sidhar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt to aver that being an illiterate, he did not understand the contents of MoU, as it was written in English. At the same length and breadth, the assessment order as well as the other correspondences made by the appellant including the submissions made become irrelevant, since the same are also made in English language. Further, the information as inscribed in the MoU, as relied mainly by the A.O/ was also supported by the statements on oath recorded from the representatives of M/s. Sidhartha Estates and M/s. Surakshita homes. The information as available in the impounded material also indicate the payment of Rs. 1,40,00,000/- to Mr. Vijender Reddy, including the amounts paid by demand drafts to the extent of Rs. 20,00,000/-. Further, as ob ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no change in the total income assessed by the A.O". 3.1. Aggrieved on the above order, assessee has raised the following material grounds: "2. The learned CIT(A) erred in holding that the appellant received an amount of Rs. 1,40,00,000/- from Surakshitha Homes whereas the actual amount received is only Rs. 40,00,000/-. 3. The learned CIT(A) ought to have seen that there is no evidence with Surakshitha Homes that an amount of Rs. 1,40,00,000/- was paid to the appellant herein. 4. Alternatively, the learned CIT(A) erred in holding that the amount realized by surrendering the right to specific performance represents the income assessable for the year under consideration". Ground Nos. 1 & 5 are general in nature. 4. It was the cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 20 Lakhs and balance by way of cash- between 04-09-2006 to 04-12- 2006. One payment on 09-11-2006 was through Shri Krishna Reddy. Balance of the amount of about Rs. 72,75,000/- was also transfer entries from Shri Krishna Reddy account. The role of Shri Krishna Reddy was not brought on record and we are not sure whether any statement has been recorded from Shri Krishna Reddy. Prima-facie there seems to be evidence in support of the Revenue contentions, but since the account copies and statements have not been confronted to assessee, considering the request made by the Ld. Counsel in the course of arguments, we are of the opinion that the matter is to be set aside to the file of the AO to give proper opportunity to assessee to explain his ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
