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TMI Blog2022 (12) TMI 1304X X X X Extracts X X X X X X X X Extracts X X X X ..... n Industrial Estate where the assessee acted only as an agent in facilitating the purchase of land from farmers on behalf of M/s. Vardhman Industrial Estate. As observed that the ld. CIT (Appeals) deleted these additions based on these evidences where major portion of the lands were registered in the name of M/s. Vardhman Industrial Estate and a small portion to its sister concern. Addition being cash deposits into bank account - CIT (Appeals) was of the view that it would be unreasonable to add the entire amount as these proceeds emanate from the business of the assessee which is on-going. The ld. CIT (Appeals) also observed that assessee had opening balance of Rs.24,05,867/-. Therefore, the ld. CIT (Appeals) considered the peak credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he source of deposits holding that amount routed through bank account and registries existed in the name of M/s Vardhman Industrial Estate and its concern, proves the genuineness of transactions. iii. The order of the Ld. CIT(A) be set aside and order of the AO be restored. 3. Brief facts of the case are that the assesssee filed his return of income on 29.03.2010 declaring income of Rs.1,44,000/-. Subsequently the assessment was reopened by issue of notice under Section 148 of the Income Tax Act, 1961 (the Act) dated 15.05.2014. The Assessing Officer noticed that the assessee deposited cash of Rs.1,04,99,400/- into his bank account with Axis Bank Ltd., Haridwar, during the financial year 2008-09 relevant to the assessment year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore the ld. CIT (Appeals) cash flow statement along with copies of bank statement, sale deed and other documents as these documents were not produced before the AO during the assessment proceedings. The ld. CIT (Appeals) forwarded all thewse documents to the Assessing Officer for his comments. The Assessing Officer sent a remand report dated 19.03.2018, copy of which was also provided to the assessee. After obtaining the comments of the assessee on remand report the ld. CIT (A) deleted the additions made by the Assessing Officer against which the revenue is in appeal before us. 5. The ld. DR strongly placed reliance on the orders of the Assessing Officer and whereas the ld. Counsel for the assessee placed reliance on the orders of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 87 lacs by cheque in two tranches one of Rs. 76,50,000/- and another Rs. 10,50,000/-. Apart from that the AO also noted that the assessee received cash deposit of Rs. 1,04,99,400/- in respect of which amount received by cheque. The AO has stated that the assessee was unable to provide any evidence of actually having received this amount from M/s Vardhman Industrial Estate or actually having registered any land in the name of M/s. Vardhman Industrial Estate. The AO also noted that he got the enquiry conducted by the ITI of his office which give rise to the finding that one Sh. Anil Malhotra, a close relative of assessee was engaged in property dealing business with the Directors of M/s Vardhman Industrial Estate. He signed purchase and sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in favour of M/s Vardhman Industrial Estate and its sister concern for payment of service fee. The evidences that lies in favour of the assessee are :- i) Confirmation from Vardhman Industrial Estate and its sister concern that they have paid the assessee the monies. ii) That the amounts are routed through banking channel that is verifiable. iii) Documents that show that lands were registered in the name of Vardhman Industrial Estate. 25. Therefore, the addition made of Rs. 76,50,000/- and Rs. 10,50,000/- are hereby deleted. 26. The assessee also received an amount of Rs. 1,04,99,400/- as cash deposit in its bank account. The assesse has stated that this amount was also received as part of same activity. Howe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and they are verifiable. The finding of the ld. CIT (Appeals) that the documents show that lands were registered in the name of M/s. Vardhman Industrial Estate where the assessee acted only as an agent in facilitating the purchase of land from farmers on behalf of M/s. Vardhman Industrial Estate. It is observed that the ld. CIT (Appeals) deleted these additions based on these evidences where major portion of the lands were registered in the name of M/s. Vardhman Industrial Estate and a small portion to its sister concern. 8. In so far as addition of Rs.1,04,99,400/- being cash deposits into bank account is concerned, the ld. CIT (Appeals) held that there are regular deposits and withdrawals in the bank accounts and the total deposit is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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