9911796707
TMI Blog2021 (7) TMI 1127X X X X Extracts X X X X X X X X Extracts X X X X ..... ntioned in the agreement seized. 3. The appellant craves leave to add or amend the grounds of appeal on or before is heard and disposed off." 3. The assessee has raised the following grounds of cross objections: "1. That the ld. CIT(A) has grossly misdirected himself in law and in facts, to reject the following legal grounds, having direct bearing on the validity of assumption of jurisdiction in this case and comprehensively argued before him, in a most casual, cryptic and perverse manner: (i) That the present proceedings, as admitted by the AO himself; having been initiated following seizure of an agreement in the search of PISCO Group, having direct bearing on assessee, then the jurisdiction could be invoked only under section 153C and not u/s. 148. Thus, the order under appeal is not sustainable being illegal on this premise. (ii) That the ld. ACIT has grossly erred in facts and in law, in assuming jurisdiction in this case by invoking the provisions of section 147/148 and therefore, the impugned order, passed in consequence thereof, is void ab initio. (iii) That the ACIT Circle, Hoshiarpur, having already issued notice u/s. 148 on 26.03.2012, thereby regularizing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the assessee has made interest free advances and loans to his family members/sister concerns in the following manner:- xxxxxxxxxxx At the same time had debited bank interest to the tune of Rs. 22.19 lacs. The Assessing Officer required the assessee to explain as to how the interest bearing funds could be said to be used for the purpose of business especially in face of interest free loans to friends/sister concerns highlighted above. No explanation on the said issue before the Assessing Officer as recorded in the assessment year at para 5.2. The Assessing Officer therefore proceeded to disallow 12% on the entire amount of advances leading to disallowance of Rs. 14 lacs. 26. During the course of appellate proceedings the AR of the appellant submitted his arguments on the issue as under:- xxxxxxxxxxxxxxx 29. I have considered the facts of the case, the basis, of addition made by the Assessing Officer and the arguments of the AR on the issue. It is seen that the entire set of circumstances show that the appellant has avoided to give data from the books of account to show the business use of Interest bearing funds. In the circumstances the view of the Assessing Officer that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent case the reassessment proceedings in the case of the assessee were initiated for the reason mentioned as under: "02. During the course of search action in PISCO group of cases at various premises, the following documents/papers were seized and also some transactions are noticed. You are requested to explain the source of investment/explanation with supporting evidences and explain its relevance with the respective financial year/assessment year:- 03. Your attention is drawn to an agreement written on stamp papers dated 10.05.2007, entered into between Sh. Ravneet Takhar S/o Sh. Ravinder Singh, M.D. of PISCO, G.T. Road, Jalandhar as a 1st Party & Sh. Mohinder Singh, S/o Sh. Gopal Singh r/o Model Town, Jalandhar & Sh. Joginder Singh S/o Sh. Labh Singh r/o Vill. Rollian Distt. Hoshiarpur as 2nd party. This agreement is in respect of the property M/s. PISCO Ltd., in Vill. Birring, Distt. Jalandhar. The agreement was made at the rate of Rs. 11.05 Crore per acre (measurement taken at 1 marla= 272 sq. ft.). This agreement has been duly signed by the respective parties in the presence of Witnesses Sh. Ramesh Inder Singh, S/o Sh. Pavittar Singh & Sh. Vinay Kumar. This agreement has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are made." 4. From the perusal of the reasons/satisfaction note, it is clear that a search was carried out in the premises of Punjab Iron & Steel Company Ltd.(PISCO) on 03.08.2011. During the search proceedings an agreement was found from the residential premises of Sh. Vinay Kumar, Accountant of PISCO wherein an agreement deed of the land was found showing the rate of land as 11,05,00,000/- per acre (1 marla = Rs. 690625). 5. It is the case of the Assessing Officer that the assessee had purchased the land from Sh. Kulwinder Singh who in turn had purchased land from PISCO admeasuring 65.67 marla. 6. The Assessing Officer in this regard had made an addition of Rs. 3,91,71,875/- to the income of the assessee as mentioned in paragraph 7.5 to the following effects: "7.5 Considering the above facts and circumstances and issues discussed above there is documentary evidence on record on the basis of which it is very well proved that the assessee has purchased land from Kulwinder Singh, who in turn, purchased land from M/s. Punjab Iron & Steel Co. Ltd., Jalandhar measuring 3 Kanals 7 marlas @ Rs. 11,05,00,000/- per acre whereas registration deed is made a at the value of Rs. 71,00,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions made in the hand of Kulwinder Singh for allegedly purchasing land from PISCO were deleted by the Tribunal and the finding of the Tribunal were confirmed by the Hon'ble High Court. In our considered opinion no additions can be sustained in the hands of the assessee, more particularly when the additions made in the hands of seller were deleted by the Tribunal and confirmed by the Hon'ble High Court. In fact there is no evidence or document in possession of the Assessing Officer on the basis of which the satisfaction can be withdrawn of the Assessing Officer in respect of escapement of income as record in the order. In our considered opinion, once the addition in the hands of Sh. Kulwinder Singh (seller) have been deleted, there is no reason upholding the same in the case of the purchaser (in the assessee before us), therefore, respectively following the decision in the identical case as referred by the CIT(A) in paragraph 4.2 of the appellate order and also decision of the Hon'ble High Court in ITA No. 101 of 2017. We do not find any merit, in the appeal of the Revenue and accordingly the same is dismissed. 10. As we have dismissed the appeal filed by the Revenue, w ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
