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TMI Blog2018 (7) TMI 578X X X X Extracts X X X X X X X X Extracts X X X X ..... ondonation petition accompanied by an affidavit stating that the Chartered Accountant of the assessee was frequently hospitalized due to illness and he finally expired in April, 2015. Thereafter his son took over the management of the firm and on realizing that no appeal was filed against the impugned order, had immediately taken steps and filed the current appeals on 20/05/2015 with a delay of 423 days. The assessee submitted that the delay in filing the appeals was due to a genuine inability and due to sufficient and reasonable cause and hence, it was prayed that the delay of 423 days may be condoned, failing which irreparable loss and injury may be caused to the assessee. 3. We have heard the rival submissions and perused the record. On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 40,000/- from Gazaz global Ad Vision Pvt. Ltd. On verification of the details of land deal with Shri Anil Kumar Sharma, the Assessing Officer noticed that the assessee had only received advance of Rs. 1,50,00,000/- from Shri Anil Kumar Sharma during the FY 2006-07 relating to AY 2007-08 and no property transaction was done during the year. However, from the cash flow statement and bank statements, it was noticed by the Assessing Officer that there were huge cash deposits in the SB account of the assessee with Federal Bank and ICICI bank. It was explained by the assessee that these were amounts received from Shri Muhammed and Hameed towards refund of advance paid for purchase of properties on behalf of brother of assessee's father-in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arious land advances on cancellation of deals executed by the assessee on behalf of his relatives. According to the Ld. AR, the declaration and statement filed by the assessee clearly established that the cash deposits in banks were made out of the surplus funds available with the assessee as an agent on behalf of the relatives. The Ld. AR submitted that the assessee had not been given an opportunity to prove his case. 8. On the other hand, the Ld. DR relied on the orders of the lower authorities. 9. We have heard the rival submissions and perused the record. The main plea of the assessee's Counsel is that originally the amount was advanced for purchase of landed properties by the assessee's relatives out of their NRE bank accounts, the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and during the period from 01/04/2007 to 25/09/2008 and Shri Anil Kumar Sharma had paid about Rs. 5.71 cores to the assessee through banking channels. Since the assessee had not filed the return of income for AY 2008-09, notice u/s. 148 of the Act was issued to the assessee. However, the assessee did not respond to the notice and the Assessing Officer issued notice u/s. 144 of the Act. In response to the 144 notice, the assessee filed return of income declaring a total income of Rs. 6,85,205/-, which included remuneration of Rs. 40,000/- from Gazaz global Ad Vision Pvt. Ltd. and commission amounting to Rs. 4,45,205/- from the property deal with Shri Anil Kumar Sharma. On verification of the land deals made by the assessee during the year, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Kumar Sharma from whom the money was received by the assessee. According to the CIT(A), the person from whom money had come and the person in whose name these properties had been registered is one and the same, namely Shri Anil Kumar Sharma, and therefore it goes to prove that the assessee was only working as an agent and not as a trader as assumed by the Assessing Officer . The CIT(A) relied on the judgment of the Hon'ble Apex Court in the case of Durga Prasad More (82 ITR 540) wherein it was observed that - "High Court should not ignore facts of life.........need not put on blinkers and swallow the story given without applying test of human probabilities. According to the CIT(A) it is not possible for an agent to make super normal profit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee had received an amount of Rs. 4,57,18,050/- from various parties. Out of this, the assessee had utilized an amount of Rs.,1,86,66,400/- . The Assessing Officer brought to assessment the balance amount of Rs. 2,70,51,650/- as business profit of the assessee from the property transactions with the parties. Further, the Assessing Officer observed that the assessee earned short term capital gain of Rs. 30,34,250/- on the sale of the landed property of 54.75 cents. The Assessing Officer considered the amount of Rs. 3,00,85,900/- as income of the assessee. The CIT(A) considered the assessee as an agent in real estate business and estimated the income of the assessee at 50% of the total money in the bank account which is not correct. Once ..... X X X X Extracts X X X X X X X X Extracts X X X X
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