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TMI Blog2023 (1) TMI 1116X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to purchase said property in future. This aspect was not at all considered by the AO and the CIT(A) but both the authorities below went out to disbelieve the version of the assessee as an afterthought. Admittedly, the AO added an amount of Rs.1,60,000/- to the total income of the assessee on account of undisclosed investment which is evident from computation vide para 7 of the AO s order. CIT(A) also without verifying whether there is any investment as brought on by the AO in terms of alleged cash payments reflected in agreement to purchase (issar chitthi). Before us nothing was brought on record to show that the alleged cash payments towards purchase of property were resulted into any investment. Therefore, in the absence of any c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue is to be decided in ground No. 1 is as to whether the CIT(A) justified in confirming the addition made by the AO on account of unexplained investments. 7. Brief facts relating to the issue on hand are that the assessee is an individual engaged in the business of trading in sugar on a wholesale basis. He conducts his business under the name and style as M/s. S.J. Ghaniwala which is a proprietary concern. A search and seizure action was conducted on 14-02-2007 in the case of Ghaniwala group u/s. 132 of the Act. Various premises belonging to the assessee were stated to have covered in the said search action. According to the AO, certain documents were seized from the residence of assessee as per panchnama dated 15-02- 2007 under Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Ghaniwala has given hand loan of Rs.3,00,000/- and the receipt were kept with him for safe keeping as a mediator. 9. The AO found that the explanation of the assessee as not acceptable. According to the AO there was no documentary proof showing the cancellation of agreement to purchase (issar chitthi) and did not believe the confirmation of letter issued by Abdul Razzaq Haji Daud stating nonreceipt of Rs.1,00,000/- in view of his endorsement on agreement to purchase (issar chitthi) showing receipt of the said amount in the agreement. Therefore, holding that the statement of hand loan to Abrahar Razzaq Ghaniwala by Raffique Ghaniwala is an afterthought and added sum of Rs.1,00,000/- and Rs.60,000/- to the total income of the assessee vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pecifically the affidavit at pages 34 to 36, we note that the contents of the said affidavit stands corroborates with the submissions of the assessee, that due to disputes no transaction caused effected in terms of the agreement to purchase (issar chitthi), we note that when it is not materialized into final deed which obviously the payments alleged to have been made by the assessee must have returned back. In this regard, both the authorities below did not examine whether the said alleged payments stated to have been paid by the assessee and reflecting in the agreement to purchase (issar chitthi) returned to the assessee or not. There is no document or whatsoever brought on record by the authorities below that the said transaction was mate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of property were resulted into any investment. Therefore, in the absence of any corresponding asset stated to have been materialized in terms of agreement to purchase (issar chitthi), the addition as confirmed by the CIT(A) is not justified. Thus, the order of CIT(A) is set aside and the grounds raised by the assessee are allowed. 11. In the result, the appeal of assessee is allowed. ITA No. 158/NAG/2016, A.Y. 2005-06 12. We find that the issues raised in the appeal and the facts in ITA No. 158/NAG/2016 are identical to ITA No. 157/NAG/2016 except the variance in amount. Since, the facts in ITA No. 158/NAG/2016 are similar to ITA No. 157/NAG/2016, the findings given by us while deciding the appeal of assessee in ITA No. 157/ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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