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TMI Blog2025 (4) TMI 542X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. On facts and circumstances of the case and in law, the learned CIT(A), has grossly erred in partly confirming the action of the learned AO in making an addition of Rs. 6,62,686/- u/s. 56(2)(vii)(b) of the Act, in respect of difference between the stamp duty value and the actual purchase value of the plots of land purchased by the appellant, without even acceding to the request of the appellant to make reference to the Departmental Valuation Officer (i.e. DVO) to determine the Fair Market Value (i.e. the FMV) of the subject plots of land, which is erroneous, illegal and bad-in-law and needs to be deleted. 3. The appellant craves leave to add, amend, alter, substitute, modify in any or all the above grounds of appeal, if necessary, on the basis of submissions to be made at the time of personal hearing." 3. The brief facts of the case are that the assessee filed return of income for the impugned year under consideration declaring total income of Rs. 6,91,210/-. Subsequently, a search action under Section 132 of the Act was carried out on 06.03.2018 in the case of Balar Group of Surat. During the course of search, several documents and evidences were found and seized which reflec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Surat on 19.05.2021 after recording necessary satisfaction. The contention of the appellant that the ITO is not competent to issue notice u/s 153C of the Act is devoid of any merit as the provision of Section 158BG of the Act are not applicable to the proceedings u/s 153A / 153C of the Act. The satisfaction note recorded by the AO contains all the necessary facts relevant to the appellant for assuming jurisdiction to initiate proceedings u/s 153C of the Act. Therefore, considering the overall facts of the case, I do not agree with the contention of the appellant and in my opinion the AO has initiated proceedings u/s 153C of the Act by following due procedure of law. Hence, Ground No.1 raised by the appellant is dismissed. ..... 7.2 On perusal of the assessment order and the submissions made by the appellant, it is seen that the addition has been made by invoking provision of Section 56(2)(viib) of the Act being the difference between the stamp duty value and purchase consideration in respect of 5 immovable properties purchased by the appellant. The appellant in his submissions simply stated that he has paid consideration as mentioned in the registered purchase deed and no amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he first time, which is to the effect that the additions were not based on incriminating material found during the course of search and also taking into consideration the legal arguments taken before Ld. CIT(A), we are of the considered view that in the interest of justice, the matter may be restored to the file of Ld. CIT(A) to give a specific finding on the various legal arguments taken by the assessee challenging the validity of the assessment made during the course of proceedings under Section 153C of the Act. We note that the additional legal argument stating that the additions were not made on the basis of incriminating material found during the course of search have been raised for the first time before us and this aspect, whether additions have been made on the basis of incriminating materials found during the course of search, in our considered view, would require further investigation into the facts of the case to assess whether there is any factual force in this ground sought to be taken by the assessee. In our view, this additional legal argument would require further investigation into the documents found during the course of search and whether the additions have been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw and needs to be deleted. 4. The appellant craves leave to add, amend, alter, substitute, modify in any or all the above ground of appeal, if necessary, on the basis of submissions to be made at the time of personal hearing." 11. Before us, at the outset, the Counsel for the assessee submitted that he shall not be pressing Ground No. 1 of the assessee's appeal. Accordingly, Ground No. 1 of the assessee's appeal is hereby dismissed as not pressed. Ground No. 2: Additon of Rs. 1,00,000/- under Section 69A of the Act 12. The brief facts in relation to this ground of appeal are that during the assessment proceedings, the Assessing Officer asked the assessee to explain the contents of certain loose documents which showed that an amount of Rs. 1,00,000/- was given by the assessee to Shri Punabhai Babarbhai on 22.04.2017. During the course of assessment, the assessee submitted that the amount of Rs. 1,00,000/- was an advance payment made by the assessee for purchase of construction material etc. to it's contractor Shri Punabhai Babarbhai. Further, the assessee submitted that as mentioned in the said page/loose paper, if the work is not executed till 13.12.2017, the said amount is l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee by Shri Punabhai Babarbhai on 10.09.2017. The Department has not challenged the veracity of the books of accounts maintained by the assessee. Further it has also not been disputed that as per the cash book available with the assessee, the assessee had adequate cash on hand to advance this amount to Shri Punabhai Babarbhai. The only reason why the addition was confirmed in the hands of the assessee was on the ground that the assessee was unable to show details showing execution of contract with the said party. In our considered view, on going through the facts of the instant case, it a fit case where the addition is liable to be deleted. This is for the reason that this amount of Rs. 1,00,000/- was advanced to Shri Punabhai Babarbhai was duly reflecting in the books of accounts maintained by the assessee and the fact of refund of such amount back to the assessee was also duly reflecting in the books of account maintained by the assessee. Further, even as per the cash book available with the assessee, the assessee had adequate cash in hand to advance the aforesaid amount to Shri Punabhai Babarbhai. Accordingly, looking into the instant facts and taking into consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X
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