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TMI Blog2022 (2) TMI 751X X X X Extracts X X X X X X X X Extracts X X X X ..... roper enquiries and verifications which should have been made in respect of these transactions found during the course of survey. Agreement for purchase of property and payment therefore - AO has raised a specific query as part of initial notice u/s 142(1) dated 24.07.2018 and in response to the same, the assessee has submitted that he has made a payment of ₹ 36 lacs towards purchase of a residential house and a part of which has been funded through bank borrowing amounting to ₹ 27 lacs from the OBC Bank duly reflected in the financial statements. We therefore find that the matter has been duly examined by the AO and after taking into consideration the submission of the assessee including the source of payment towards the purchase of residential house, the same has been accepted and no adverse finding has been recorded. Thus, it cannot be said that there is failure on part of the Assessing officer to make proper enquiries and verifications which should have been made in respect of the said transaction. There is no basis to hold that the order passed by the Assessing officer is erroneous is so far as prejudicial to the interest of the Revenue - Decided in favour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9,00,000/-respectively. b) The second issue pointed out is that an agreement for purpose of property for ₹ 60,00,000/- was found against which ₹ 36,00,000/- was paid on 27.11.2015 and balance was to be paid on 30.4.2016 which was not verified. 5. It was submitted that even during the course of survey, detailed examination of these documents was made which was also verified at the time of assessment proceedings, and income taken was more than the income which was determined on the basis of these documents. Further there was no income embedded in these documents but since the income was accepted during the course of survey proceedings, the said income was duly included and tax was paid by the assessee. 6. The ld AR referred to the statements of the assessee recorded on 1.12.2015 during survey proceedings and in reply to question No. 4, it was stated as under:- 7. It was further submitted that in the assessment order, the nature of business of the assessee is being mentioned. The assessee is proprietor in M/s Navkar Traders, Dhan Mandi, Sangaria and the main source of income is commission income from trading of agriculture commodities. The farmer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able from the books and even during the survey the same was verified. The balance payment as per agreement was required to be made in next year. There prima facie there is nothing which needs to be done in the year under consideration. Even otherwise, the registered sale deed is a public document, and the balance payment of ₹ 24,00,000/- was duly made on 7.5.2016 which is not a event of the current year. The said payment was also verifiable form the bank statement and registered sale deed, which was also verified. In letter dated on 2.8.2018, the details of bank loan taken for purchase of this property and copy of bank statement was also furnished in relation to the payment made during the year under consideration. Nothing remains to be examined in the year under consideration and therefore the order cannot be said to be erroneous or prejudicial to the interest of revenue on this issue also. 10. It was accordingly submitted that under the present facts and circumstances, the order so passed U/s 263 may be set-aside. 11. Per contra, the ld. CIT/DR relied on the finding of the ld PCIT which are contained at para 5 of his order which reads as under:- 5. The reply file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aining payment was made on 30.04.2016. The Assessing Officer failed to verify the said information as to whether the registered deed was executed or not. The AO is directed to examine this issue after verifying necessary details and documents from the assessee. 12. We have heard the rival contentions and perused the material available on record. On perusal of statement of Shri Pawan Kumar Jain recorded u/s 133A on 01.12.2015, it is noted that in response to question no. 4, he has offered an amount of ₹ 8 lacs to tax towards advances given out of books to Shri Hemraj Jyani and in response to question no. 5, he has offered an amount of ₹ 9 lacs to tax towards advances given out of books to Shri Sargit Godara. Here it is relevant to note that the assessee has stated in his statement that though there are various entries found recorded pertaining to three financial years in respect of these two persons, given that there is circulation of money, figures of ₹ 8 lacs and ₹ 9 lacs have been arrived at after considering the interest element and which was surrendered to tax by way of additional income and the same was duly examined and taken on record by the sur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d additional income offered by the assessee in the return of income rather the AO has examined the whole gamut of documentation found during the course of survey and thereafter has accepted the additional income so offered by the assessee towards the discrepancies found during the course of survey. Thus, it cannot be said that there is failure on part of the Assessing officer to make proper enquiries and verifications which should have been made in respect of these transactions found during the course of survey. 14. Regarding the second issue raised by the ld PCIT relating to agreement for purchase of property and payment of ₹ 36 lacs made during the year, it has been submitted that the payment is duly verifiable from the bank statement and the books of accounts maintained by the assessee and also find mention in the registered sale deed executed during the subsequent financial year and the details thereof were duly submitted vide letter dated 1.08.2018 and thus duly examined by the AO during the course of assessment proceedings. In this regard, we find that the AO has raised a specific query as part of initial notice u/s 142(1) dated 24.07.2018 and in response to the same ..... X X X X Extracts X X X X X X X X Extracts X X X X
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