DIGAMBAR DNYANDEO PATIL,PUNE vs. DEPUTY COMMISSIONER OF INCOME-TAX,

PER ANIL CHATURVEDI, AM :

This appeal filed by the assessee is emanating out of the order of Commissioner of Income Tax (A) – 12, Pune dt.18.09.2015 for the assessment year 2009-10. 2. The relevant facts as culled out from the material on record are as under :-

On 20.06.2011 assessee was intercepted at Pune Airport for having unexplained cash of Rs.25,00,000/-. Thereafter, a requisition was issued and the cash was seized. Thereafter a notice u/s 153A was issued on 22.05.2012 and in response to which, assessee filed his return of income on 29.08.2012

disclosing income of Rs.3,58,770/-. Thereafter, the case was taken up for scrutiny and assessment was framed u/s 153(A)

r.w.s. 143(3) of the Act vide order dt.27.03.2014 and the total

income was determined at Rs.3,36,19,918/-. Aggrieved by the order of AO, assessee carried the matter before Ld.CIT(A), who

vide order dt.18.09.2015 (in appeal No.PN/CIT(A)-12/DCIT, Cent

Cir-2(1) Pune/39,43/2014-15) dismissed the appeal of the assessee. Aggrieved by the order of Ld.CIT(A), assessee is now in appeal before us and has raised the following ground :-

“On the facts and circumstances of the case and in law the Honourable CIT (Appeals) – 12, Pune erred in confirming the disallowance of expenses of Rs.18,79,928/- incurred by the appellant for clearing the title in the plot of land situated at S.No.180/1, Akurdi without appreciating the facts of the case in proper perspective. The appellant hereby prays that the additions may please be deleted.”

was adjourned as none appeared on behalf of the assessee and the notice for the present hearing was issued to the assessee on 01.11.2017. On the date of present hearing also since none

appeared, we proceed to dispose of the appeal ex-parte qua the assessee on the basis of material on record and after hearing the Ld.D.R.

that assessee had claimed receipt of Rs.4,01,00,000/- on account of sale of land against which assessee has claimed

expenditure of Rs.73,44,928/-. The assessee was asked to identify the beneficiaries and prove the expenditure of Rs.73,44,928/-. AO noted that assessee could identify

beneficiaries for only Rs.54,65,000/- and could not identify the beneficiary for expenses to the tune of Rs.18,79,928/-. AO

therefore held that since assessee could not identify the beneficiaries and services rendered by them, the claim of expenditure of Rs.18,79,928/- cannot be allowed. He

accordingly disallowed the expenses. Aggrieved by the order of AO, assessee carried the matter before Ld.CIT(A). The perusal of the Ld.CIT(A) order reveals that since assessee had failed to furnish the details, the order of AO was upheld. Aggrieved by the order of Ld.CIT(A), assessee is now in appeal before us.

justified in making the addition.

as assessee could not produce the details of beneficiaries and expenses and the order of AO was also upheld by Ld.CIT(A).

Before us in the grounds it is assessee’s contention that the expenses have been incurred for clearing the title of the plot

situated in Sy.No.180/1, Akudi. It is a fact that before lower

authorities, assessee has not filed the necessary details. At the same time, it is also not disputed by Revenue that assessee is engaged as Developer, Builder and Contractor and out of the total expenses of Rs.73,44,928/- that was incurred by assessee,

AO had allowed expenses of Rs.54,65,000/-. Considering the aforesaid facts and in the interests of justice, we feel that the assessee be granted one more opportunity to produce the necessary evidence before the AO to prove his contentions. We

therefore restore the issue back to the file of AO to decide the issue afresh with respect to disallowance of Rs.18,79,928/-. We

also direct the assessee to produce the necessary details to the satisfaction of the AO. In case assessee fails to furnish the necessary evidence, AO shall be free to proceed on the basis of material on record. Thus, the ground of the assessee is allowed for statistical purposes.

Order pronounced on 17th day of January, 2018. (SUSHMA CHOWLA) (ANIL CHATURVEDI) "या"यक सद"य / JUDICIAL MEMBER लेखा सद"य / ACCOUNTANT MEMBER

पुणे Pune; "दनांक Dated : 17th January, 2018. Yamini

आदेश क" ""त"ल"प अ"े"षत/Copy of the Order forwarded to :

आदेशानुसार/ BY ORDER,स "या // // / //////

व"र"ठ "नजी स"चव / Sr. Private Secretary आयकर अपील"य अ"धकरण ,पुणे / ITAT, Pune.