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TMI Blog2024 (11) TMI 914X X X X Extracts X X X X X X X X Extracts X X X X ..... dition - HELD THAT:- On the basis of admitted facts it comes up that investment was made in two floors of the same building which assessee was using for residence. This aspect that the two floors of the same building were purchased from the same seller is not disputed. Interpretation of a residential house u/s 54F - AO has allowed relief only in respect of one floor and before us several decisions have been referred to by learned AR wherein it is settled that the expression a residential house in section 54F(1) has to be understood in the sense that the building should be of residential nature and a should not be understood to indicate a singular number. Thus, even in case of purchases of two residential flats assessee is entitled to exempt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... persons. AO has extended too far his jurisdiction of reassessment to examine the cash deposits and treating it as business receipts, without any effective enquiry from the assessee. Assessee appeal allowed. - Shri Anubhav Sharma, Judicial Member And Shri Brajesh Kumar Singh, Accountant Member For the Assessee : Sh. M.K. Gupta, CA For the Department : Shri Sanjay Kumar, Sr. DR ORDER PER ANUBHAV SHARMA, JM: The assessee has come in appeal against the order dated 29.02.2024 passed by the National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred as learned First Appellate Authority or in short FAA ) in Appeal no. CIT(A), Faridabad/- 11371/2019-20, for the assessment year 2012-13, arising out of the order dated 28.12.2019 u/s 147 re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us to explain the reasons for claiming deduction u/s 54F of the Act. On perusal of the claim made by the assessee and considering the relevant provisions of Income tax Act, it has been found that the assessee has claimed excess deduction of Rs. 21,36,483/- u/s 54F of the Act, in its computation of total income and the same not allowable under the Act, and deserves to be added back to the taxable income of the assessee. However, the facts and circumstance of the case law quoted by the assessee are different distinguishable with the case of the assessee. Accordingly, addition of Rs. 21,36,483/- is made on account of excess deductions u/s 54F of the Act, in respect of long term capital gain and added back to the total income of the assessee. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Kumar, where the assessee failed to produce the books of accounts, the Hon'ble Punjab Haryana High court had held the action of the Assessing Officer in estimating the net profit at a rate of 12% as correct and making addition of the entire cash deposit/other credit may not be reasonable in view of the pattern of the cash deposit, withdrawals and other credit entries. Thus, in the circumstances of the case of the assessee, estimation of profit depends upon the wisdom of the officer. Thus, there is no comparability of results of preceding years in absence of material regarding comparability. 8.3 In present case, though the assessee has failed to furnish his return of income u/s 139 of the Act, even than the turnover is evident from the m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ast discussion on same is in assessment order only. (b) Completely ignoring that there was no business, even credit entries on account of dishonored cheques, loan refund, Loan taken etc. were treated as business receipts without referring any basis thereof particularly when same is not even the subject matter of 148. 3. As regards ground no. 1 on the basis of admitted facts it comes up that investment of Rs. 84.80 lakh was made in two floors of the same building which assessee was using for residence. This aspect that the two floors of the same building were purchased from the same seller is not disputed. AO has allowed relief only in respect of one floor and before us several decisions have been referred to by learned AR wherein it is sett ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tice u/s 142(1) was issued on 24.11.2019, a copy of which is available at page no. 91 of the paper book and in this only relevant question with regard to this issue raised was please witness the source of cash deposit amounting to Rs. 12,90,380/- made during the financial year 2011-12 with Union Bank of India . 4.2 As a matter of fact learned AR established that actual cash deposit was only of Rs. 7,38,000/-. However, without putting assessee to notice of the inference drawn by the AO that assessee was engaged in some sort of business activity a conclusion was drawn and addition was made by the learned AO on the basis of profit work out @ 12% of the cash/credit entries of Rs. 1,18,33,000/-. Thus, we find substance in ground no. 3 as raised ..... X X X X Extracts X X X X X X X X Extracts X X X X
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