GULSHAN AHULWALIA,NEW DELHI vs. ADIT, NEW DELHI

The first issue raised by the assessee is the jurisdictional issue of making the assessment in the hands of the assessee in assessment year 2001-02 in respect of a transaction undertaken in assessment year 2002- 03.

The assessee has raised various issue in relation to invoking of jurisdiction under section 148 of the Act. The learned AR for the assessee has argued at length alleging that the re-assessment proceedings initiated in the case were not warranted, however at the end he points out that the transaction of sale of the property took place in assessment year 2002-03 and the addition which has been made in the hands of the assessee was on account of unexplained cash consideration receipt in lieu of the said sale transaction. He pointed out that there was no merit in making the aforesaid addition in the hands of the assessee in assessment year 2001- 02.

The learned DR for the Revenue placed reliance on the orders of the authorities below.

We have heard the rival contention and perused the record. The issue which we are adjudicating in the present appeal is in relation to the alleged cash consideration receipt on sale of property. The assessee while arguing the appeal in relating to assessment year 2004-05 in the case of Shri. S.P.S. Ahluwalia had placed on record the copies of the sale deed of House No. 1/1 Shanti Niketan, New Delhi at pages 23 to 89 of the paper book. Different sale deeds for different portions of the said property were dated 16th June, 2001 i.e. the transaction relating to assessment year 2002-03. During the course of search, one document was seized on which there were certain entries of cash components in relation to sale of the House No. 1/1 Shanti Niketan, New Delhi. Since the sale transaction had taken place in assessment year 2002-03 and as no date of transaction was mentioned on the seized 2

2001-02. Accordingly, we delete the aforesaid addition of Rs. 44,14,537/- made on account of the alleged cash consideration receipt on sale of Property No. 1/1 Shanti Niketan, New Delhi, to the extent of assessee’s share in the property. The grounds of appeal raised by assessee are thus allowed.

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