MADAN LAL HUF,ALWAR vs. ACIT, CENTRAL CIRCLE, ALWAR, ALWAR

The Ld. CIT (A) has erred on facts and in law in confirming the addition of Rs. 5, 00,000/- made by AO u/s. 69 of the Act by not properly appreciating the explanation of the assessee.

The appellant craves to alter, amend and modify any ground of appeal.

Necessary cost be awarded to the assessee.

The brief facts of the case are that the assessee H.U.F. filed its return of income on 22.09.2017 u/s. 139(4) of the Act declaring total income at Rs. 4, 75,860/- A search and seizure u/s. 132 of the Act was carried out on the members/concerns of the Gupta Group, Alwar on 22.09.2017 of which the assessee is one of the constituents. During the course of the above referred action, cash, jewellery, valuables, stock-in-trade, documents, books of account and/ or loose papers were found and/or seized from the premises of the members of the Gupta Group of which one such member happens to be the assessee. Notice u/s. 153C of the Act was issued and served upon on 25.09.2019 requiring filing a return. In response to the same original return was again filed by the assessee on 03.10.2019. After deliberation on various issues, ultimately the case was assessed making addition of Rs. 10 Lacs u/s. 69 r.w.s. 115BBE of the Act and u/s. 56(2)(ix) of the Act, 5 Lacs each respectively. The assessee being aggrieved with the same preferred an appeal before the Ld. CIT (A), who partly allowed the appeal of the assessee. The assessee being further aggrieved preferred the present appeal before us.

We have gone through the order of the AO, order of the Ld. CIT (A) and submissions of the assessee alongwith grounds taken before us. It is observed that the assessee purchased residential plot no. 153, 154, 167, and 170 to 175 at Khasra No. 74, Village Naharpur, and Alwar from Shri Praveen Jain for consideration of Rs. 21.51 Lacs out of which Rs. 17.41 Lacs was paid in cash during the year under consideration. The assessee explained that Rs. 17.41 Lacs were paid in cash on 14.05.2015 and Rs. 4.09 Lacs were paid through bank on 22.07.2013. The cash payment was explained to be out of Rs. 5 Lacs received in cash from Shri Hari Om Datta H.U.F. on 13.05.2015 against agreement to sale of agriculture land measuring 13.75 acre at village Naharpur and opening cash in hand. The Ld. CIT(A) relied on the provisions of section 292C of the Act, as the cash advance received against the sale consideration of land to Shri Hari Om Datta H.U.F. was recorded in the books of accounts on 19.05.2015, whereas cash for buying the land was shown to be paid on 14.05.2015. 4. As per the assessee, he received Rs. 5 Lacs from Shri Hari Om Data H.U.F. and Shri Deepak Gupta according to which, against total sales consideration of Rs. 34.92 Lacs, he received Rs. 5 Lacs as an advance. In support of this the assessee filed agreement to sale his agriculture land measuring 13.75 acre at village Naharpur and receipt of Rs. 5 Lacs issued by the assessee vide dated: 13.05.2015. Now, here it is pertinent to mention that neither the cash receipt of Rs. 5 Lacs issued by the assessee to the prospective buyer, i.e. Shri Hari Om Data H.U.F. and Shri Deepak Gupta nor the agreement to sale his agricultural land measuring 13.75 acre at village Naharpur for a consideration of Rs. 34.92 Lacs were ever filed by the assessee before the AO to substantiate availability of cash balance and to rebut the presumption drawn by the Revenue u/s. 292C of the Act.

These facts first time claimed by the assessee before the Ld. CIT (A) only and as per our observation, there were no substantiating evidences and circumstances, which justifies non filing of the documents before the AO and in 4

अपीलाथ /The Appellant , 2. ितवादी/ The Respondent. 3. आयकर आयु CIT 4. िवभागीय ितिनिध, आय.अपी.अिध., Sr.DR., ITAT, 5. गाड फाइल/Guard file.