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TMI Blog2022 (10) TMI 395X X X X Extracts X X X X X X X X Extracts X X X X ..... f money in purchase of property in the name of the assessee only instead of getting registered in their name is unbelievable. Since in the instant case, CIT (A) in a very cryptic order has deleted the addition and since the powers of the Assessing Officer during the remand proceedings are very limited, therefore, considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the AO with a direction to give one final opportunity to the assessee to substantiate his case and decide the issue as per fact and law. We hold and direct accordingly. The grounds raised by the Revenue are accordingly allowed for statistical purposes. X X X X Extracts X X X X X X X X Extracts X X X X ..... hority, hence have failed to prove their credit worthiness". 3. Facts of the case, in brief, are that the assessee is an individual and derives income from hiring of Hitachi vehicle in addition to real estate business during the financial year relevant to the A.Y 2015-16. He filed his return of income on 31.3.2017 declaring taxable income of Rs.7,00,930/-. The case was selected for limited scrutiny through CASS to verify "Whether Sundry Creditors are genuine and whether the cash deposit has been made from disclosed sources". Statutory notices u/s 143(2) & 142(1) were issued to which the assessee filed the requisite details called for from time to time. 4. During the course of assessment proceedings, the Assessing Officer asked the assessee to furnish the list of addresses of sundry creditors. From the details so filed, the Assessing Officer noted that out of the list of sundry creditors, only three parties are sundry creditors and the following are business associates. The three sundry creditors are Shri G. Sreekanth, Rs.5,70,000/-, Shri U. Swathvik Rs.1,50,000 & Shri V. Babjan Rs.5,70,000/-. Following are the business associates as claimed by the assessee: S. No Name of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time of registration. He observed that the Pattadar pass books and promissory notes cannot be verified at this juncture as the matter is getting barred by time before 31.12.2017. Further, it is noticed from the Documents of Tallavalasa property, that although the property is registered in two names, however, the entire property is disclosed in the books of accounts of the assessee. This itself indicates that the assessee has invested the entire amount in the purchase of property. The Assessing Officer after going through all the submissions was convinced that they are not in a position to invest or lend huge amounts of money and all are agriculturists and not filing returns of income. In absence of proper substantiation to prove the creditworthiness of the creditors, the Assessing Officer observed that assessee's claim of taking loans from the above mentioned creditors to the tune of Rs.4,21,54,560/- is not tanable. He also observed that all the transactions were only cash transactions and attract provisions of section 269 SS of the I.T. Act, 1961. The Assessing Officer accordingly held the above investment as unexplained investment in purchase of property u/s 69 of the I.T. Act, 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .00 lakhs as well as gold loan of Rs.30.00 lakhs. He submitted that the entire amount has been paid in cash and therefore, it raises doubt. Merely because the persons have appeared and stated before the Assessing Officer that they have given the money cannot be the basis to delete the addition when all the persons have given money in cash and have derived income from agricultural activity or sale of sheep etc., Referring to the decision of the Hon'ble Supreme Court in the case of CIT vs Durga Prasad More, reported in (1969) 82 ITR 540(SC) and Sumati Dayal vs. CIT reported in 214 ITR 801 he submitted that the order of the learned CIT (A) is not in conformity with the facts and circumstances of the case and therefore, the same should be reversed and that of the Assessing Officer be restored. 11. The learned Counsel for the assessee, on the other hand, heavily relied on the order of the learned CIT (A). He submitted that the assessee has produced all the 7 persons before the Assessing Officer whose statements were recorded. All the persons have confirmed to have invested in the property at Vizag and they all are business associates. They have explained their source as income from ..... X X X X Extracts X X X X X X X X Extracts X X X X
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