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TMI Blog2017 (10) TMI 482X X X X Extracts X X X X X X X X Extracts X X X X ..... cted. 3. In ground no.2, the assessee has pleaded that the ld.CIT(A) has erred in confirming addition of Rs. 11.00 lakhs which was added by the AO with the aid of section 68 of the Income Tax Act, 1961. 4. Brief facts of the case are that the assessee at the relevant time was running proprietorship concern in the name and style of "Dev Satya Corporation". He has filed his return of income on 20.9.2009 through electronic media declaring total income at NIL. The case of the assessee was selected for scrutiny assessment and notice under section 143(2) was issued and served upon the assessee. On scrutiny of the accounts, it revealed to the AO that the assessee has taken cash loan of Rs. 11 lakhs from Jayaben Balkrishna Oza. He directed the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e affidavit. Having considered all these facts, I uphold the finding of the A.O. that the appellant failed to establish the creditworthiness of Smt. Jayaben and the genuineness of the transaction of sale of immovable property (and the pursuant receipt of cash of Rs. 11,00,000/- from her towards part of sale consideration)." 5. With the assistance of the ld.representatives, we have gone through the record carefully. Section 68 of the Income Tax Act contemplates that where any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof, or the explanation offered by the assessee is not, in the opinion of the AO satisfactory, then the sum so cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver to M/s.Rajeshwar Corporation on 31.7.2008, when the agreement to sell was executed. On the other hand, the case of the assessee is that possession was handed over in the subsequent assessment year. Capital gain was arisen in the Asstt.Year 2010-11 and the assessee has duly offered the amount for taxation. The AO rejected this contention of the assessee and assessed short-term capital gain in the Asstt.Year 2009-10. The appeal to the ld.CI(A) did not bring any relief to the assessee. 9. Before us, the ld.counsel for the assessee contended that a memorandum of understanding was executed between representatives of Rajeshwar Corporation and the assessee on 27.12.2009. According to this MOU payments have been made to the assessee on 1.4.200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is we confronted the ld.counsel for the assessee to demonstrate how this gain has been offered in the Asstt.Year 2010-11. The assessee's plea before the ld.CIT(A) was, that he had converted this land as stock-in-trade and thereafter sold it. The amount was credited in the profit & loss account, and it has been offered as business profit. We have examined the computation of income submitted by the assessee for the Asstt.Year 2010-11, and other details. It is pertinent to observe that the assessee has not acquired absolute right in the property. He has acquired only right to obtain sale deed, by virtue of agreement dated 7.5.2008. He has signed subsequent sale deed in favour of Rajeshwar Corporation as a confirming party. Original owner has s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2(a) of section 153. They read as under: Section 153 ...... ...... 6) Nothing contained in sub-sections (1) and (2) shall apply to the following classes of assessments, reassessments and recomputation which may, subject to the provisions of sub-sections (3) and (5), be completed- (i) where the assessment, reassessment or recomputation is made on the assessee or any person in consequence of or to give effect to any finding or direction contained in an order under section 250, section 254, section 260, section 262, section 263, or section 264 or in an order of any court in a proceeding otherwise than by way of appeal or reference under this Act, on or before the expiry of twelve months from the end of the month in which such order i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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