9911796707
TMI Blog2023 (12) TMI 497X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Sunshine Housing Infrastructure Pvt. Ltd. rather purchased the property in question in A.Y. 2013-14 in second sale from M/s. Trincas Agencies Commerce Pvt. Ltd. at the rate more than the fair market value. Reopening made on the basis of search conducted at the M/s. Sunshine Housing Infrastructure Pvt. Ltd. and the statement of Shri N.K. Vora recorded under section 132(4) of the Act reopening of the assessment in A.Y. 2011-12 is invalid and not sustainable in the eyes of law. Even on merits the addition made in the hands of the assessee in A.Y. 2011-12 in which no such property was purchased by the assessee is sustainable in the eyes of law, hence ordered to be deleted. Appeal filed by the assessee is allowed. - Shri Kuldip Singh, Judicial Member And Shri S Rifaur Rahman, Accountant Member For the Assessee : Shri Reepal Tralshawala, A.R. For the Revenue : Shri H.M. Bhatt, D.R. ORDER PER : KULDIP SINGH, JUDICIAL MEMBER: The appellant, Shri Prashant Rameshchandra Samdani (hereinafter referred to as the assessee ) by filing the present appeal, sought to set aside the impugned order dated 23.06.2023 passed by the National Faceless Appeal Cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ough the same was in complete violation of principles of natural justice and thus, the Ld. CIT(A) failed to appreciate that - a) no material or evidence whatsoever was given to the Appellant proving any payment of on-money for purchase of property, and even though requested to submit the same time and again; b) copy of statement recorded of one person so called Shri Nikhil Vora is not furnished even though relied upon by AO for reopening of assessment as also for making addition and even though requested to submit the same time and again; c) cross-examination of Shri Nikhil Vora or any other person related to builder was not given by the Ld. AO and categorically denied by the Ld. CIT(A) for no valid reason whatsoever; and hence, the addition sustained of Rs. 1,25,39,000/- u/s.69A of the Act is without any justification and needs to be deleted. 4. The Appellant craves leave to add, amend, alter or delete all or any of the aforesaid grounds of appeal.. 2. Briefly stated facts necessary for consideration and adjudication of the issues at hand are : the assessee is an individual and proprietor of M/s. Gunina Ventures engaged in trading business. The assessee s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is also not in dispute that figure of amount of Rs. 1,25,39,000/- being the alleged on money paid by the assessee for the purchase of immovable property has come from the statement of Shri N.K. Vora, sales head of Sunshine group recorded under section 132(4) of the Act and that the assessee along with M/s. Trincas Agencies Commerce Pvt. Ltd. had paid on money of Rs. 1,25,39,000/- in cash qua purchase of office premises No.34 in M/s. Sunshine Housing Infrastructure Pvt. Ltd. It is also not in dispute that the agreement for sale was executed qua the property in question between M/s. Sunshine Housing Infrastructure Pvt. Ltd. and M/s. Trincas Agencies Commerce Pvt. Ltd. on 23.03.2010. It is also not in dispute that agreement for sale dated 13.08.2012 was executed between M/s. Trincas Agencies Commerce Pvt. Ltd. and the assessee for the purchase of office premises in question at the total sale consideration of Rs. 9,92,00,000/- which was more than the market value of the said property. 6. In the backdrop of the aforesaid undisputed facts and circumstances of the case the sole question arises for determination in this case is as to whether: Addition of Rs. 1,25,39,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed under section 132(4) of the Act which has never been supplied rather in para 6.1 of the order dated 31.10.2018 passed for dismissing of the objections filed by the assessee it is mentioned that the statement of Shri N.K. Vora, recorded under section 132(4) of the Act will be provided during the course of proceedings after giving proper opportunity of being heard . So without providing copy of statement of Shri N.K. Vora recorded under section 132(4) on the basis of which reopening under section 147/148 was initiated, reopening itself is invalid. 11. Furthermore, the AO made the addition of Rs. 1,25,39,000/- being the difference between agreement value and market value of the sale agreement dated 23.03.2010 entered into between M/s. Trincas Agencies Commerce Pvt. Ltd. M/s. Sunshine Housing Infrastructure Pvt. Ltd. with which the assessee has no connection. In case any such addition is to be made it is to be made in the name of M/s. Trincas Agencies Commerce Pvt. Ltd. 12. When it is undisputed fact on record that the assessee has purchased the premises in question by virtue of the sale agreement dated 13.08.2012 (in A.Y. 2013-14), from M/s. Trincas Agencies Commerce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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