JAYSHRIBEN BIPINCHANDRA MODI,AHMEDABAD vs. THE ITO, WARD-6(1)(1), AHMEDABAD

The order passed by the lower authorities is bad in law and required to be quashed. Asst. Year : 2011-12 - 2–

Ld.JCIT(A) erred in law and on facts in confirming action of AO of reopening of Assessment.

Ld.JCIT(A) erred in law and on facts in making addition of Rs.11,38,000/- by invoking section 69 ignoring submission of the appellant.

Both lower authorities erred in proceeding without providing material relied on and consequential cross examination.

Both lower authorities ought to have consider the fact that mere declaration before settlement commission by builder/developer without any tangible evidence does not warrants any addition.

Charging of interest u/s.234A, 234B, 234C, 234D are unjustified.

Initiation of penalty u/s. 271(1)(c) of the Act is unjustified.

From the records, we find that the Assessing Officer made an addition of Rs.11,38,000/–, being the amount paid by the assessee to the builder of Rs.8,00,000/– by cheque and Rs.3,38,000/– in cash. The Ld. CIT(A) affirmed the action of the Assessing Officer by holding that the sources of the payments had not been satisfactorily explained. On perusal of the material available before us, it is noted that the assessee had paid Rs.4,00,000/– to Dharamdev Infrastructure Limited vide cheque no. 222361 dated 17.12.2010, and an equivalent amount of Rs.4,00,000/– vide cheque no. 222362 dated 15.01.2011. The sources of these cheque payments are not in dispute, leaving only the cash payment of Rs.3,38,000/– to be examined. Before us, the assessee explained that the said cash payment was made out of domestic savings, the pin money of the wife, and small contributions received from parents and relatives. Considering the absoluteness and diminutive nature of the cash amount involved, and in view of the specific circumstances of the case, we are of the opinion that the Asst. Year : 2011-12 - 3–

In the result, the appeal of the assessee is allowed.

अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधतआयकरआयुƅ / Concerned CIT 4. आयकर आयुƅ(अपील) / The CIT(A)- 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडŊ फाईल / Guard file.