SHRI ARVIND GOTEWALA, Jaipur V. INCOME TAX OFFICER, Jaipur

ITA 443/JPR/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 6202 (ITAT-JAIPUR)
• Duration Of Justice: 3 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 04-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VARINDER MEHTA CIT DHK
• Assessee Lawyers: S L PODDAR; ISHA KANOONGO
• Keywords: Unexplained investment; Business income; Search and seizure; Loose papers; Document seized; Documents seized
• Section: 143(3); 131

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR JH FOT; IKY JKO] U;KF;D LNL; ,OA JH HKKXPAN] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI BHAGCHAND, A M VK;DJ VIHY LA-@ ITA NO. 442 & 443/JP/2018 FU/KZKJ.K O'KZ@ ASSESSMENT YEARS : 2013-14 & 2014-15 ARVIND GOTEWAL, S/O- SHREERAM GOTEWAL, B-7, SHIV MARG, BANI PARK, JAIPUR. CUKE VS. INCOME TAX OFFICER, WARD 3(2), JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: ABUPG 9494 K VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI S.L. PODDAR & MS. ISHA KANOONGO (ADV) JKTLO DH VKSJ LS@ REVENUE BY : SHRI VARINDER MEHTA (CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 24/07/2018 MN?KKS'K.KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 27/07/2018 VKNS'K@ ORDER PER: BHAGCHAND, A.M. BOTH THESE APPEALS FILED BY THE ASSESSEE EMANATES FROM THE COMMON ORDER OF THE LD. CIT(A)-I, JAIPUR DATED 28/03 /2018 FOR THE A.Y. 2013-14 AND 2014-15 RESPECTIVELY. THE ONLY ISSUE INV OLVED IN THESE APPEALS ARE AGAINST CONFIRMING THE ADDITION OF RS. 5,68,00,000/- IN THE A.Y. 2013-14 AND RS. 3,78,50,000/- IN THE A.Y. 2014-15. 2. THE ASSESSEE IS INDIVIDUAL AND FILED HIS RETURN O F INCOME FOR THE A.Y. 2013-14 ON 27/02/2014 DECLARING TOTAL INCOME OF RS. 11,71,020/- AND ITA 442 & 443/JP/2018_ ARVIND GOTEWAL VS ITO 2 RETURN OF THE A.Y. 2014-15 WAS FILED ON 28/03/2015 D ECLARING TOTAL INCOME OF RS. 13,83,590/-. THE ASSESSMENT WAS FINALIZED U/S 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) AT RS. 5,79 ,71,020/- IN THE A.Y. 2013-14 AND RS. 3,92,33,590/- IN THE A.Y. 2014-15 B Y MAKING DISALLOWANCE U/S 69A OF THE ACT. 3. BEING AGGRIEVED BY THE ORDER OF THE ASSESSING OF FICER, THE ASSESSEE CARRIED THE MATTER BEFORE THE LD. CIT(A), WHO HAD CON FIRMED THE ACTION OF THE ASSESSING OFFICER IN BOTH THE ASSESSMENT YEARS. 4. THE BRIEF FACTS OF THE CASE ARE THAT THE APPELLAN T HAS FILED ITS RETURN OF INCOME FOR THE AY 2013-14 ON 27/02/2014 DECLARIN G TOTAL INCOME AT RS. 11,71,020/- WHICH INCLUDES REMUNERATION AND BUSINESS INCOME FROM HANDICRAFT BUSINESS. A SEARCH WAS CONDUCTED AT THE R ESIDENTIAL PREMISES OF SHRI ADITYA MALPANI, WHEREIN CERTAIN DOCUMENTS WERE SEIZED AND AS PER THESE DOCUMENTS, VARIOUS PAYMENTS WERE MADE TO THE A PPELLANT BY SNG GROUP AMOUNTING TO RS. 9,46,50,000/- INCLUDING PAYM ENTS THROUGH CHEQUES OF RS. 3,18,00,000/- DURING THE PERIOD 16.0 3.2013 TO 29.09.2013 FOR PURCHASE OF PROPERTY. A COPY OF THESE DOCUMENTS AS WELL AS STATEMENT OF SHRI ADITYA MALPANI WAS PROVIDED TO THE APPELLANT DURING THE ASSESSMENT PROCEEDINGS. INITIALLY IN HIS STATEMENT, THE ASSESSEE HAS DENIED ANY TRANSACTION AS RECORDED ON THESE PAPERS. DURING THE COURSE OF ITA 442 & 443/JP/2018_ ARVIND GOTEWAL VS ITO 3 ASSESSMENT PROCEEDINGS, THE AO HAS RECORDED THE STA TEMENT OF SHRI S. N. GUPTA OF SNG GROUP, WHEREIN IT WAS STATED BY HIM THAT ALL THE ENTRIES MADE ON THESE PAPERS WERE NOT RELATED TO HIM, HOWEVER HE HAS PURCHASED A LAND AT AJMER ROAD AND THE PURCHASE CONSIDERATION WAS PAID TO SHRI ADITYA MALPANI, WHO IN TURN HAD PAID THE SAID MONEY TO THE APPELLANT. HOWEVER, SHRI S. N. GUPTA DID NOT CONFIRM THE EXACT AMOUNT FOR SUCH PURCHASE. IT WAS ALSO STATED BY SHRI S. N. GUPTA THA T THE REGISTERED SALE DEED FOR THE LAND WAS EXECUTED BY THE APPELLANT ON B EHALF OF SALUJA GROUP. DURING THE ASSESSMENT PROCEEDINGS, THE AO HAS OBTAI NED TWO SALE DEEDS DATED 09/05/2013, EXECUTED BY THE APPELLANT AS AUTH ORIZED REPRESENTATIVE OF M/S SALUJA CONSTRUCTION CO. LTD. AND M/S CHETANY A BUILDCON PVT. LTD. THE AO HAS FURTHER RECORDED THE STATEMENT OF SHRI AD ITYA MALPANI, WHEREIN IT WAS AGAIN CONFIRMED BY HIM THAT THESE SEIZED DOCU MENTS WERE RELATED TO THE SALE OF LAND TO M/S SNG AND M/S YADUVANSHI L ANDS PVT. LTD. 5. WHILE PLEADING ON BEHALF OF THE ASSESSEE, THE LD AR HAS SUBMITTED AS UNDER: 1. A SEARCH AND SEIZURE OPERATION ON THE RESIDENTIA L PREMISES OF SHRI ADITYA MALPANI/SNG GROUP WERE TOOK PLACE ON 26.02.2014. DU RING THE COURSE OF SEARCH LOOSE PAPERS WERE FOUND AT THE RESIDENTIAL P REMISES OF SHRI ADITYA MALPANI. THE MAIN PAPER ON THE BASIS OF WHICH ADDIT IONS HAVE BEEN MADE IS PAGE 5 OF ANNEXURE A-2 WHICH IS SCANNED AND REPR ODUCED BELOW: ITA 442 & 443/JP/2018_ ARVIND GOTEWAL VS ITO 4 DURING THE COURSE OF ASSESSMENT PROCEEDINGS STATEME NT OF SHRI ADITYA MALPANI WAS RECORDED FROM THERE THE PAGE NO. 5 WAS SEIZED AND HE WAS EXAMINED WITH REFERENCE TO THIS PAPER. A COPY OF TH E STATEMENT OF SHRI ADITYA MALPANI IS AVAILABLE ON PAPER BOOK PAGE NUMB ER 1 TO 2. SHRI ADITYA MALPANI IS HIS STATEMENT RECORDED ON 16.03.2016 DEP OSED THAT THIS PAPER HAS RECORDING OF PAYMENTS MADE IN RESPECT OF LAND PURCHASED AT GARDEN ESTATE, D-BLOCK, MAHAPURA, AJMER ROAD, JAIPU R BY SNG GROUP AND YADUVANSHI LANDBASE PVT LTD THROUGH SHRI ARVIND GOT EWALA. SIMILARLY STATEMENT OF SHRI SATYA NATAYAN GUPTA OF SNG GROUP WAS ALSO RECORDED ON 16.03.2016 U/S 131 OF THE INCOME TAX ACT, 1961. HE WAS ALSO EXAMINED WITH REFERENCE TO THIS PAGE. SHRI S.N. GUPTA DEPOSE D THAT THIS PAPER WAS IN RESPECT OF PAYMENTS MADE BY HIM IN RESPECT OF LAND PURCHASED AT AJMER ITA 442 & 443/JP/2018_ ARVIND GOTEWAL VS ITO 5 ROAD FROM SALUJA GROUP OF COMPANIES AND REGISTRATIO N OF LAND HAS ALSO BEEN COMPLETED. A COPY OF STATEMENT OF SHRI S.N. GU PTA IS AVAILABLE ON PAPER BOOK PAGE NUMBER 3 TO 5 . THUS SHRI ADITYA MALPANI AND S.N. GUPTA HAVE CONFIRMED THAT THE PAGE NO. 5 OF ANNEXURE A-2 WAS HAVING RECORDINGS AND NOTINGS OF PAYMENTS MADE BY THEM FOR PURCHASE O F LAND FROM SALUJA GROUP OF COMPANIES THROUGH SHRI ARVIND GOTEWALA. IT IS SUBMITTED THAT THE ASSESSEE I.E. SHRI ARVIND GOTEWALA WAS AUTHORIZED BY SALUJA CONSTRUCTIONS COMPANY LTD, 30, COMMUNITY CENTRE, BASANT VIHAR, NEW DELHI AS WELL AS BY CHETANYA BUILDCON PVT. LTD, 30, COMMUNITY CENTRE, BASANT VIHAR, NEW DELHI FOR EXECUTING SALES OR LAND SITUATED AT MAHAPURA, JAIPUR TO SNG REAL ESTATE PVT LTD AND YADUVANSHI LA NDBASE PVT LTD. COPY OF RESOLUTIONS PASSED BY THE COMPANIES AUTHORIZING TO SHRI ARVIND GOTEWALA FOR EXECUTING SALE DEEDS IN RESPECT OF THE AFORESAI D LAND ARE AVAILABLE ON PAPER BOOK PAGE NUMBER 6 TO 7. SUBSEQUENTLY THE LAND IN QUESTION WAS SOLD AS UNDER: - SR. NO. PARTICULARS OF LAND SELLER PURCHASER AMOUNT AS PER DEED/ MODE OF PAYMENT DATE OF REGISTRATION (I) MAHAPURA LAND M/S CHETANYA BUILDCON PVT. LTD THROUGH AUTHORIZED REPRESENTATIVE SHRI ARVIND GOTEWALA SNG REAL ESTATE PVT. LTD THROUGH DIRECTOR SHRI S.N. GUPTA 70600000 (AMOUNT TRANSACTED BY CHEQUE) 09.05.2013 (II) MAHAPURA LAND SALUJA CONSTRUCTIONS COMPANY LTD. THROUGH AUTHORIZED REPRESENTATIVE SHRI ARVIND GOTEWALA SHARE BY SNG REAL ESTATE PVT. LTD THROUGH DIRECTOR SHRI S.N. GUPTA AND YADUVANSHI LANDBASE PVT. LTD. THROUGH DIRECTOR SHRI MOHAN LAI YADAV 8200000 (AMOUNT TRANSACTED BY CHEQUES) 09.05.2013 COPIES OF TITLE DEEDS IN RESPECT OF THE AFORESAID T RANSACTIONS ARE AVAILABLE ON PAPER BOOK PAGE NUMBER 8 TO 22. IT IS SUBMITTED THAT ON BEING QUESTION BY THE LEARN ED ASSESSING OFFICER REGARDING THE AFORESAID PAYMENT NOTED ON PAGE NO. 5 THE ASSESSEE SUBMITTED THAT HE ACTED ONLY AS AN AUTHORIZED PERSO N FOR SELLING THE ITA 442 & 443/JP/2018_ ARVIND GOTEWAL VS ITO 6 AFORESAID LANDS. THE LAND BELONGED TO THE AFORESAID TWO COMPANIES AND THE CONSIDERATION WAS ALSO RECEIVED BY THEM. IT WAS FUR THER SUBMITTED BY HIM THAT THE ENTIRE CONSIDERATION AS SHOWN ON PAGE NO. 5 OF ANNEXURE A-2 WAS ACCOUNTED FOR BY THE AFORESAID COMPANIES. THE ACCOU NTING OF THE AMOUNTS NOTED ON PAGE 5 ARE EXPLAINED AS UNDER: - SR.NO. DATE AMOUNT REMARKS 1. 16-MAR 1100000 ACCOUNTED IN THE BOOKS OF CHETANYA BUILDCON PVT. LTD . ON THE SAME DATE 2. 18-MAR 5000000 ACCOUNTED IN THE BOOKS OF CHETANYA BUILDCON PVT. LTD. ON THE SAME DATE 3. 20-MAR 17700000 ACCOUNTED IN THE BOOKS OF CHETANYA BUILDCON PVT. LTD. ON THE SAME DATE 4. 21-MAR 1200000 ACCOUNTED IN THE BOOKS OF CHETANYA BUILDCON PVT. LTD. ON THE SAME DATE 5. 23-APR 2500000 ACCOUNTED IN THE BOOKS OF CHETANYA BUILDCON PVT. LTD. ON THE SAME DATE 6. 25-APR 6000000 ACCOUNTED IN THE BOOKS OF CHETANYA BUILDCON PVT. LTD. ON THE SAME DATE 7. 26-04-13 2500000 ACCOUNTED IN THE BOOKS OF CHETANYA BUILDCON PVT. LTD. ON THE SAME DATE 8. 22-APR 500000 IT RELATED TO SHRI NARAYAN YADAV AS M ENTIONED IN THE PAPER ITSELF. 9. 27-APR 4500000 ACCOUNTED IN THE BOOKS OF CHETANYA BUILDCON PVT. LTD. ON THE SAME DATE 10. 29-APR 3500000 ACCOUNTED IN THE BOOKS OF CHETANYA BUILDCON PVT. LTD. ON THE SAME DATE 11. 30-APR 1750000 ACCOUNTED IN THE BOOKS OF CHETANYA BUILDCON PVT. LTD. ON THE SAME DATE 12. 01-MAY 250000 ACCOUNTED IN THE BOOKS OF CHETANYA BUILDCON PVT. LTD. ON THE SAME DATE 13. 04-MAY 5000000 ACCOUNTED IN THE BOOKS OF CHETANYA BUILDCON PVT. LTD. ON THE SAME DATE 14. 09-MAY 2350000 ACCOUNTED IN THE BOOKS OF CHETANYA BUILDCON PVT. LTD. ON THE SAME DATE 15. 25-AUG 1000000 ACCOUNTED IN THE BOOKS OF CHETANYA BUILDCON PVT. LTD. ON THE SAME DATE 16. 29-AUG 2000000 ACCOUNTED IN THE BOOKS OF CHETANYA BUILDCON PVT. LTD. ON THE SAME DATE 17. 04-SEP 1000000 ACCOUNTED IN THE BOOKS OF CHETANYA BUILDCON PVT. LTD . ON THE SAME DATE 18. 29-SEP 5000000 RS. 4716000/- IS ACCOUNTED IN THE BOOKS OF CHETANYA BUILDCON PVT. LTD. ON THE SAME DATE AND RS. 2,84,00,000/- IS ACCOUNTED IN THE BOOKS OF M/S SALUJA CONSTRUCTIONS COMPANY LTD 62850000 ITA 442 & 443/JP/2018_ ARVIND GOTEWAL VS ITO 7 COPY OF ACCOUNTS AS APPEARING IN THE BOOKS FOR OF C HETANYA BUILDCON PVT LTD AND SALUJA CONSTRUCTIONS COMPANY LTD FOR THE AF ORESAID PERIOD ARE AVAILABLE ON PAPER BOOK PAGE NUMBER 23 TO 26 . THUS IT IS SUBMITTED THAT THE ENTIRE PAYMENTS NOTED ON THIS PAGE STAND FULLY ACCOUNTED FOR IN THE BOOKS OF THE SELLERS NAME M/S CHETANYA BUILDCON PVT . LTD AND M/S SALUJA CONSTRUCTIONS COMPANY LTD FOR WHICH SHRI ARVIND GOT EWALA WAS AUTHORIZED. THUS WHEN THE AMOUNT WAS FULLY ACCOUNTED FOR NOTHIN G REMAINED TO BE EXPLAINED. THERE WAS NO CASE FOR TREATING ANY AMOUN T AS UNEXPLAINED U/S 69A OF THE INCOME TAX ACT, 1961. MOREOVER SHRI ARVI ND GOTEWALA APPARENTLY WAS AN AUTHORIZED PERSON. HE WAS NOT THE OWNER OF THE LANDS HENCE NO ADDITION COULD HAVE BEEN MADE HIS HANDS. T HE LEARNED ASSESSING OFFICER COMPLETELY FAILED TO APPRECIATE THE FACTS I N THE RIGHT PERSPECTIVE AND UNWANTEDLY INDULGED IN MAKING ADDITION THAT TOO IN A WRONG HAND. 2. FULL SALE CONSIDERATION DISCLOSED BY THE SELLERS IN THEIR IT RETURNS: - IT IS SUBMITTED THAT THE APPARENT CONSIDERATION SH OWN IN THE SALE DEEDS IS AS MENTIONED ABOVE RS. 7,06,00,000/- IN THE HANDS OF C HETANYA BUILDCON PVT LTD AND RS. 82,00,000/- IN THE HANDS OF SALUJA CONSTRUCTION S COMPANY LTD. THE PERUSAL OF THE SALE DEEDS DISCLOSED THAT THESE AMOUNT HAVE BEE N RECEIVED FULLY BY CHEQUE. IN THE SALE DEEDS THERE IS NO RECITATION OF RECEIPT OF ANY CASH AMOUNT. HOWEVER THE COMPANIES HAVE ACCOUNTED FOR FULL CONSIDERATION IN THEIR BOOKS OF ACCOUNTS WHICH IS AS UNDER: SR .NO. NAME OF COMPANY CONSIDERATION AS PER SALE DEED DATED 09.05.2013 FULL CONSIDERATION IN THE BOOKS OF ACCOUNTS CONSIDERATION SHOWN IN THE IT RETURNS (I) CHETANYA BUILDCON PVT. LTD 70600000 153166000 153166000 (II) SALUJA CONSTRUCTIONS COMPANY LTD 8200000 18262000 18262000 IT IS SUBMITTED THAT FOR PURPOSES OF STAMP DUTY THE SALE CONSIDERATION DISCLOSED WAS LESS BUT IN THE ACCOUNTS BOOKS AND FO R PURPOSES OF INCOME TAX RETURNS FULL CONSIDERATION HAS BEEN DISCLOSED W HICH INCLUDES THE CASH AMOUNT ALSO. THIS FULL CONSIDERATION DISCLOSED BY B OTH THE COMPANIES COVERS/INCLUDES/ ACCOUNTS FOR THE CASH TRANSACTIONS NOTED ON PAGE 5 OF ANNEXURE A-2 WHICH AMOUNT TO RS. 6,23,50,000/- (EXC LUDING AN AMOUNT OF ITA 442 & 443/JP/2018_ ARVIND GOTEWAL VS ITO 8 RS. 5,00,000/- WHICH PERTAIN TO SHRI NARAYAN YADAV AS MENTIONED ON PAGE NO. 5 ITSELF.) IT IS SUBMITTED THAT OUT OF THIS AMO UNT OF RS. 6,23,50,000/- RS. 2,50,00,000/- PERTAINS TO ASSESSMENT YEAR 2013-14 A ND RS. 3,73,50,000/- PERTAINS TO ASSESSMENT YEAR 2014-15. THE LEARNED AS SESSING OFFICER WAS MOST UNJUSTIFIED IN TREATING THE AMOUNT OF RS.2,50, 00, 000/- AS UNEXPLAINED INVESTMENT U/S 69A OF THE INCOME TAX ACT, 1961 IN T HE HANDS OF THE ASSESSEE. THE ABOVE FACTS LAY THREAD BARE AND MAKE IT ABUNDANTLY CRYSTAL CLEAR THAT THE CASH PAYMENTS NOTED ON PAGE 5 OF ANN EXURE A-2 STAND FULLY ACCOUNTED FOR BY THE SELLER COMPANIES IN THEIR BOOK S OF ACCOUNT AND THE COMPANIES HAVE OFFERED CAPITAL GAINS ON SUCH TOTAL AMOUNT OF SALE. COPY OF IT RETURNS AND COMPUTATION OF TOTAL INCOME OF M/S C HETANYA BUILDCON PVT LTD AND M/S SALUJA CONSTRUCTIONS COMPANY LTD ARE AV AILABLE ON PAPER BOOK PAGE NUMBER 27 TO 37. FOR YOUR KIND PERUSAL. THUS THE ADDITION OF RS. 2,50,00,000/- MADE IN THE HANDS OF THE ASSESSEE DES ERVES TO BE DELETED. THE LEARNED ASSESSING OFFICER WAS WRONG TO HOLD THA T THE ASSESSEE FAILED TO EXPLAIN THE NOTINGS ON PAGE 5. THE LEARNED ASSESSIN G OFFICER FURTHER ERRED IN HOLDING THAT THE AMOUNT RECEIVED BELONGED TO THE ASSESSEE. BOTH THE COMPANIES ALSO WROTE LETTERS DATED 21.03.2 016 ADDRESSED TO THE LEARNED ASSESSING OFFICER TO THE EFFECT THAT AS AGA INST THE SALE CONSIDERATION NOTED IN THE TITLE DEED DATED 09.05.2 013 THEY HAVE BOOKED THE FULL SALE CONSIDERATION INCLUDING THE CASH AMOU NT IN THEIR ACCOUNTS BOOKS FOR THE ACTUAL CONSIDERATION. CHETANYA BUILDC ON PVT. LTD HAS ADDRESSED LETTER DATED 21.03.2016 THAT THE DOCUMENT NO. 2013397019732 ON 09.05.2013 WAS FOR ACTUAL SALE CONSIDERATION OF RS. 15,31,66,000/- AS AGAINST RS. 7,06,00,000/- SHOWN IN THE SALE DEED. S IMILARLY SALUJA CONSTRUCTIONS COMPANY LTD HAVE ALSO ADDRESSED LETTE R DATED 21.03.2016 STATING THAT DOCUMENT NO. 2013397019746 WAS FOR ACT UAL CONSIDERATION OF RS. 1,82,62,000/- AS AGAINST RS. 82,00,000/- SHOWN IN THE SALE DEEDS. COPIES OF THESE LETTER ARE AVAILABLE ON PAPER BOOK PAGE NU MBER 38 TO 39 . THESE ITA 442 & 443/JP/2018_ ARVIND GOTEWAL VS ITO 9 PAPERS ARE OF THE NATURE OF CONCLUSIVE EVIDENCE. TH ERE WAS NO CASE FOR THE LEARNED ASSESSING OFFICER TO REJECT THEM WITHOUT BR INGING ANY MATERIAL ON RECORD TO CONTROVERT THESE. THESE PAPERS MAKE IT AM PLE CLEAR THAT THE ASSESSEE WAS NOT INVOLVED IN ANY WAY IN THE SALE CO NSIDERATION AMOUNT. NO ADDITION COULD BE MADE ON ACCOUNT OF SALE OF LAND O R ON ACCOUNT OF PAYMENTS NOTED ON PAGE 5 OF ANNEXURE A-2. 3. ADDITION OF RS. 3,18,00,000/- ALLEGED TO BE BY C HEQUE: - THE LEARNED ASSESSING OFFICER HAS ALSO MADE ADDITI ON OF RS. 3,18,00,000/- IN THE HANDS OF THE ASSESSEE ON THE BASIS OF THE SA ME PAGE NO. 5 OF ANNEXURE A-2 AS IT IS NOTED THAT RS. 3,18,00,000/- WAS PAID BY CHEQUE. HOWEVER THE PAPER DOES NOT CONTAIN THE FOLLOWING:- (I) DETAILS OF CHEQUE NUMBER (II) DATE ON WHICH CHEQUES WERE TENDERED (III) NAME OF THE BANK (IV) HOW MANY CHEQUES WERE ISSUED (V) PERSON IN WHOSE FAVOUR CHEQUES WERE ISSUED. IN VIEW OF THE ABOVE DEFICIENCY A DUTY WAS CAST UP ON THE LEARNED ASSESSING OFFICER TO HAVE OBTAINED THE AFORESAID PARTICULARS FROM THE PURCHASING PARTY I.E. SNG GROUP. NO EFFORT WAS MADE BY THE LEA RNED ASSESSING OFFICER LEARNED ASSESSING OFFICER TO OBTAIN THE DETAIL. ALT HOUGH STATEMENTS OF ADITYA MALPANI AND S.N. GUPTA WAS OBTAINED. IN THE FACTS AND CIRCUMSTANCES OF THE CASE THERE WAS NO BASIS FOR MA KING ADDITION IN THE HANDS OF THE ASSESSEE. IN ANY CASE ANY AMOUNT OF CH EQUE WOULD HAVE TO GO THE SOME BANK ACCOUNT. THE LEARNED A.O. HAS NOT EST ABLISHED THAT ANY SUCH AMOUNT WAS RECEIVED BY CHEQUE IN THE BANK ACCOUNT O F THE ASSESSEE. FURTHER IT IS CASE WHERE THE ASSESSEE HAS ACTED AS AN AUTHORIZED PERSON FOR M/S CHETANYA BUILDCON PVT. LTD. AND M/S SALUJA CONS TRUCTIONS COMPANY LTD. BOTH THESE COMPANIES HAVE ACCOUNTED FOR PAYMEN TS MADE BY CHEQUE AS MENTIONED IN THEIR TITLE DEEDS. M/S CHETANYA BUI LDCON PVT. LTD HAS ACCOUNTED FOR SALE CONSIDERATION OF RS. 7,06,00,000 /- BY CHEQUES. THE ITA 442 & 443/JP/2018_ ARVIND GOTEWAL VS ITO 10 DETAILS ARE AVAILABLE IN THE SALE DEED. COPY OF WHI CH IS AVAILABLE ON PAPER BOOK PAGE NUMBER CITED SUPRA. SIMILARLY M/S SALUJA CONSTRUCTIONS COMPANY LTD HAS ACCOUNTED FOR SOME OF RS.82,00,000/ - AS MENTIONED IN THE SALE DEED VIDE CHEQUE NO. 302436 DATED 26.04.20 13 OF SBBJ, PITAL FACTORY, JAIPUR. IT IS THE SUBMISSION OF THE ASSESS EE WHETHER THE AMOUNT WAS BY CASH OR BY CHEQUE IT DID NOT BELONG TO THE A SSESSEE AND THERE WAS NO CASE FOR MAKING ANY ADDITION IN HIS HANDS. FURTH ER WHEN THE TRANSACTION OF CASH HAVE BEEN FULLY ACCOUNTED FOR IN THE HANDS OF BOTH THE COMPANIES, HOW COULD IT BE THAT THE PAYMENTS BY CHEUQE WOULD R EMAIN UNACCOUNTED. IN THESE FACTS AND CIRCUMSTANCES THE ADDITION MADE IN THE HANDS OF THE ASSESSEE IS TOTALLY MISPLACED, UNCALLED FOR AND UNW ANTED. THE THEREFORE DESERVES TO BE DELETED. 4. THE PROVISIONS OF SECTION 69A HAVE WRONGLY BEEN APPLIED IT IS SUBMITTED THAT THE LEARNED ASSESSING OFFICER HAS MADE THE ADDITIONS IN THE HANDS OF THE ASSESSEE U/S 69A OF THE INCOME TAX ACT, 1961. THE PROVISIONS OF SECTION 69A ARE NOT AT APPLICABLE TO THE FACTS OF THE CASE. THE PROVISIONS ARE QUOTED BELOW: - UNEXPLAINED MONEY, ETC. 69 A. WHERE IN ANY FINANCIAL YEAR THE ASSESSEE IS FOUND TO BE THE OWNER OF ANY MONEY , BULLION . JEWELLERY OR OTHER VALUABLE ARTICLE AND SUCH MONEY, BULLION, JEWELLERY OR VALUABLE ARTICLE IS NOT RECORDED IN THE BOOKS OF ACCOUNT, IF ANY, MAINTAINED BY HIM FOR ANY SOURCE OF INCOME, AND THE ASSESSEE OFFERS NO EXPLANATION ABOUT THE NATURE AND SOURCE OF ACQUISIT ION OF THE MONEY, BULLION, JEWELLERY OR OTHER VALUABLE ARTICLE, OR THE EXPLANA TION OFFERED BY HIM IS NOT, IN THE OPINION OF THE ASSESSING OFFICER, SATISFACTORY, THE MONEY AND THE VALUE OF THE BULLION, JEWELLERY OR OTHER VALUABLE ARTICLE MA Y BE DEEMED TO BE THE INCOME OF THE ASSESSEE FOR SUCH FINANCIAL YEAR. THE PROVISIONS ARE APPLICABLE ONLY WHEN THE ASSESSE E IS FOUND TO BE THE OWNER OF ANY MONEY, BULLION, JEWELLERY OR OTHER VAL UABLE ARTICLE. IN THE CASE THERE WAS NO SEARCH AT THE PREMISES OF THE ASSESSEE AND NOTHING LIKE MONEY, BULLION, JEWELLERY OR OTHER VALUABLE ARTICLE AND SUCH MONEY, BULLION, JEWELLERY OR VALUABLE ARTICLE WAS FOUND. THEREFORE THESE PROVISIONS ARE NOT ITA 442 & 443/JP/2018_ ARVIND GOTEWAL VS ITO 11 APPLICABLE. THE ADDITION HAS WRONGLY BEEN MADE AND DESERVES TO BE DELETED. 5. ADDITION HAS BEEN ON PRESUMPTION, ASSUMPTION AND CONJECTURES: - IT IS SUBMITTED THAT INSTEAD OF DEALING WITH THE C ORE ISSUE AND BASIC FACTS THE LEARNED ASSESSING OFFICER HAS INCLUDED IN VERBO SE AND LOQUACIOUS. IT IS SUBMITTED THAT AT THE INITIAL STAGE BEING SCARED AN D UNDER THE WRONG ADVISE OF THE THEN COUNSEL THE ASSESSEE AVOIDED STATING TH E FACTS FOR WHICH HE SHOULD HAVE BEEN FORTHRIGHT. THE LEARNED ASSESSING OFFICER HAS INDULGED IN REPEATING THIS OMISSION AND COMMISSION OF THE ASSES SEE TIME AND AGAIN WHICH LEADS NOWHERE. THE DOCUMENTARY EVIDENCES ARE SUPERIOR IN NATURE AND HAVE TO BE ACCEPTED. IT IS ESTABLISHED POSITION OF LAW THAT VERBAL STATEMENTS SHALL BE SUBSERVIENT TO REGISTERED DOCUM ENTARY EVIDENCES. IN THIS CASE THE CASH PAYMENTS REFLECTED ON PAGE 5 ARE FULLY ACCOUNTED FOR BY THE COMPANIES WHO SOLD THE LAND. THEREFORE IT IS OF LITTLE SIGNIFICANCE THAT THE ASSESSEE DID NOT DIVULGE THESE FACTS RIGHT IN T HE BEGINNING. BUT THIS MISTAKE OF THE ASSESSEE CANNOT BE USED AS A WEAPON BY THE LEARNED ASSESSING OFFICER FOR MAKING ADDITIONS. HE LEARNED ASSESSING OFFICER CANNOT BE BLIND TO STARK BROAD DAY LIGHT FACTS. HE SUPPOSE D NOT TO IGNORE THE ESTABLISHED FACTS AND EVIDENCES PUT BEFORE HIM. THE LEARNED ASSESSING OFFICER HAS JUST MADE THE ADDITION ON THE BASIS OF ASSUMPTION THAT IT WAS THE ASSESSEE WHO SOLD THE LAND. THE LEARNED ASSESSI NG OFFICER HAS FURTHER PRESUMED THAT THE CASH PAYMENTS NOTED ON PAGE 5 BEL ONGED TO THE ASSESSEE. WHEREAS THE LEARNED ASSESSING OFFICER HAD NO CASE TO REJECT THE EVIDENCES PUT BEFORE HIM I.E. THE SALE DEEDS, THE C OPY OF ACCOUNTS AND COPY OF IT RETURNS OF THE COMPANIES, THE STATEMENTS OF T HE PURCHASING PARTIES. THE LEARNED ASSESSING OFFICER HAD NO CASE TO CONTRO VERT THESE EVIDENCES WHICH WERE OF CONCLUSIVE NATURE. IN THESE CIRCUMSTA NCES THE ADDITIONS MADE BY THE LEARNED ASSESSING OFFICER ON THE BASIS OF PRESUMPTION, ASSUMPTION AND CONJECTURE DESERVE TO BE DELETED. IT IS SUBMITTED THAT THE ITA 442 & 443/JP/2018_ ARVIND GOTEWAL VS ITO 12 SELLING GROUP I.E. SALUJA CONSTRUCTIONS COMPANY LTD GROUP IS ADMITTING THE SALE OF LAND TO SNG GROUP AND SNG GROUP IS ADMITTIN G PURCHASE OF LAND FROM SALUJA CONSTRUCTIONS COMPANY LTD GROUP THEN WH ERE IS THE CASE OF TREATING THE SALE IN THE HANDS OF THE ASSESSEE. THE ASSESSMENT ORDER IS NOTHING BUT A COOK AND BULL STORY OR JUST MAKING CA STLES IN THE AIR JUST DEVOID OF ANY MERIT. 6. RECEIPT OF COMMISSION BY THE ASSESSEE OF RS. 9,0 0,000/- IT IS SUBMITTED THAT THE ASSESSEE RECEIVED A SUM OF RS. 9,00,000/- AS COMMISSION FOR ARRANGING SALE AND ACTING AS AUTHORI ZED PERSON FOR GETTING THE SALE REGISTERED ON BEHALF OF SALUJA CONSTRUCTIO NS COMPANY LTD GROUP. IN THIS REGARD A COPY OF BILL RAISED BY THE ASSESSE E ON 03.05.2013 IS AVAILABLE ON PAPER BOOK PAGE NUMBER 40 . THE ASSESSEE RECEIVED PAYMENT ON 07.05.2013 OF RS. 8,10,000/- AFTER DEDUCTION OF TDS OF RS. 90,000/-. THE RECEIPT OF COMMISSION STANDS DISCLOSED IN THE IT RE TURN FOR ASSESSMENT YEAR 2014-15. COPY OF IT RETURN AND COMPUTATION OF TOTAL INCOME AND COPY OF ACCOUNT OF CHETANYA BUILDCON PVT LTD REFLECTING THE AFORESAID COMMISSION OF RS.9,00, 000/- ARE AVAILABLE ON PAPER BOOK PAGE NUMBER 41 TO 45. THE RECEIPT OF COMMISSION REFLECTS THE EXTENT OF INVOLV EMENT OF ASSESSEE IN THE TRANSACTIONS. COPIES OF SUBMISSIONS MADE BEFORE THE LEARNED ASSE SSING OFFICER ARE ALSO AVAILABLE ON PAPER BOOK PAGE NUMBER 46 TO 52. COPIE S OF SUBMISSION MADE BEFORE THE LEARNED CIT APPEAL ARE ALSO AVAILABLE ON PAGE NO. 58 TO 90. THE LEARNED CIT APPEAL WHILE DISMISSING THE APPEAL OF THE ASSESSEE HAS OBSERVE IN PARA IV ON PAGE 10 OF THE APPELLATE ORDE R AS :- I HAVE DULY CONSIDERED THE SUBMISSION OF THE APPEL LANT ASSESSMENT ORDER AND THE MATERIAL PLACED ON RECORD. IT IS NOTED FROM THE REGISTERED SALE DEEDS DATED 09.05.2013 THAT THE APPELLANT HAS SOLD THE LANDS AT JAIPUR AS ITA 442 & 443/JP/2018_ ARVIND GOTEWAL VS ITO 13 AUTHORISED REPRESENTATIVE OF M/S CHETANYA BUILDCON PRIVATE LIMITED AND M/S SALUJA CONSTRUCTION LTD. TO M/S SNG REAL ESTATE PVT. LTD. (50% SHARE) AND M/S YADUVANSHI LANDBASE PVT. LTD (50% SHARE) FO R SALE CONSIDERATION RS. 7.06 CRORE AND RS. 82 LAKH RESPECTIVELY AND THE SAID PAYMENTS WERE MADE THROUGH CHEQUES. IT IS FURTHER NOTED THAT VIDE LETTER DATED 21.03.2016, ADDRESSED TO THE ASSESSING OFFICER, THE SE TWO SALUJA GROUP COMPANIES HAS CONFIRMED THAT HIGHER SALE CONSIDERAT ION WAS BOOKED BY THEM IN THEIR BOOKS OF ACCOUNTS ON ACCOUNT OF SALE OF LAND AT JAIPUR. IT WOULD BE APPROPRIATE TO REPRODUCE THE SCANNED IMAGE S OF THESE TWO LETTERS AS UNDER: THUS, IT COULD BE SUMMARIZED AS UNDER: SOLD BY ACTUAL SALE CONSIDERATION SALE CONSIDERATION AS PER REGISTERED SALE DEED PAYMENT MADE IN CASH M/S CHETANYA 15,31,66,000 7,06,00,000 8,25,66,000 M/S SALUJA 1,82,62,000 82,00,000 1,00,62,000 TOTAL 17,14,28,000 7,88,00,000 9,26,28,000 IT MAY BE MENTIONED THAT AS PER THE COPIES OF INCOM E TAX RETURNS FOR THE ASSESSMENT YEAR 2013-14, AVAILABLE ON RECORD, M/S C HETANYA AND M/S SALUJA HAS DECLARED THE SALE CONSIDERATION OF THE L ANDS AT JAIPUR AT RS. 15,31,66,000/- AND RS. 1,82,62,000/- RESPECTIVELY. HOWEVER, IT IS NOTED FROM THEIR COMPUTATION OF INCOME THAT A NUMBER OF L ANDS WERE SOLD AT JAIPUR BY THESE COMPANIES DURING THE ASSESSMENT YEA R 2013-14 AND THE LANDS SOLD FOR CONSIDERATION OF RS. 15,31,66,000/- AND RS. 1,82,62,000/- WERE STATED TO BE SOLD ON 22/03/2013 WHEREAS, THE REGISTERED SALE DEEDS WERE EXECUTED ON 09.05.2013, WHICH PERTAINED TO THE ASSESSMENT YEAR 2014-15 AND NOT TO THE ASSESSMENT YEAR 2013-14. IT IS FURTHER NOTED THAT IN THE SEIZED DOCUMENT, TH E PAYMENT THROUGH CHEQUE AS PER REGISTRY WAS STATED AT RS. 3,18,00,00 0/- AND AS PER THE DETAILS OF CHEQUES STATED IN THE REGISTERED SALE DEEDS, I F AIL TO FIND OUT ANY SINGLE CHEQUE OF RS. 3,18,00,000/- OR A NUMBER OF CHEQUES, WHOSE TOTAL COMES TO ITA 442 & 443/JP/2018_ ARVIND GOTEWAL VS ITO 14 RS. 3,18,00,000/-. IT IS FURTHER NOTED THAT VIDE BO ARD RESOLUTIONS DATED 30.04.2013 OF M/S CHETANYA AND M/S SALUJA, THE APPE LLANT WAS AUTHORIZED ONLY TO SIGN AND EXECUTE ALL SALE RELATED DOCUMENTS SUCH AS SALE DEED ETC. PERTAINING TO THE LAND OF THESE COMPANIES AT JAIPUR AND THE APPELLANT WAS NOT AUTHORIZED TO COLLECT PAYMENT FROM THE BUYERS F ROM THESE COMPANIES. HOWEVER, THE FACT REMAINED THAT THE PAYMENTS WERE C OLLECTED BY THE APPELLANT FROM SNG GROUP, AS CONFIRMED BY SHRI SN G UPTA AND ADITYA MALPANI FOR SALE OF LAND. IT IS ALSO NOTED FROM THE COPY OF ACCOUNT OF M/S SN G GROUP IN THE BOOKS OF ACCOUNTS OF M/S CHETANYA THAT 2.60 HECTARES OF LAND AT JAIPUR WAS SOLD TO M/S SNG AND M/S YADUVANSHI FOR A SALE CONSIDERATION OF RS. 15,31,66,000/- AND THE PAYMENTS AMOUNTING TO RS. 5.50 CRORE, INCLU DING CASH OF RS. 4.50 CRORE AND CHEQUE OF RS. 1 CRORE, WAS RECEIVED DURIN G THE FINANCIAL YEAR 2013-14, AGAINST THE OUTSTANDING AMOUNT OF RS. 9,81 ,68,000/-, THE PAYMENT TO THE TUNE OF RS. 12,81,66,000/-, INCLUDING CHEQUE PAYMENT OF RS. 9.06 CRORE AND CASH PAYMENT OF RS. 3,75,66,000/- WAS MAD E. IT APPEARS THAT EXCESS PAYMENT IN CASH WAS MADE TO M/S CHETANYA BUI LDCON P. LTD. TO EXPLAIN THE CASH ENTRIES IN THE SEIZED DOCUMENTS. SIMILARLY, IT IS NOTED FROM THE COPY OF ACCOUNT OF M/S SNG GROUP AS APPEARING IN THE BOOKS OF ACCOUNTS OF M/S SALUJA TH AT 0.31 HECTARES OF LAND AT JAIPUR WAS SOLD BY M/S SALUJA FOR A CONSIDERATIO N OF RS. 1,82,62,000/- ON 22.03.2013 AND THE CASH PAYMENT OF RS. 50 LAKH AND CHQUES PAYMENT OF RS. 1.50 CRORE WAS RECEIVED DURING THE FINANCIAL YEAR 2 012-13 ITSELF I.E. A SUM OF RS. 17,38,000/- WAS RECEIVED IN EXCESS BY M/S SA LUJA. IT IS PERTINENT TO MENTION HERE THAT THE CHEQUE NO. 302436 DATED 26.04 .2013 FOR A SUM OF RS.82,00,000/- AS STATED IN THE REGISTERED SALE DEE D DATED 09.05.2013 IS NOT APPEARING IN THE COPY OF ACCOUNT OF SNG GROUP IN TH E BOOKS OF ACCOUNTS OF M/S SALUJA AS SUBMITTED DURING THE APPELLATE PROCEE DINGS. IT IS INTERESTING TO NOTE THAT DURING THE FINANCIAL YEAR 2013-14, SUM OF RS. 3 CRORE THROUGH ITA 442 & 443/JP/2018_ ARVIND GOTEWAL VS ITO 15 CHEQUES AND RS.. 50,62,000/- IN CASH WAS ALSO RECEI VED BY M/S SALUJA LEAVING BEHIND EXCESS PAYMENT OF RS. 3,68,00,000/- OF M/S SNG GROUP AS ON 31.03.2014. THE APPELLANT HAS FILED SO MANY DOCUMENTS RELATED T O M/S CHETANYA AND M/S SALUJA BUT DID NOT FILE THE COPIES OF THE DOCUM ENTS DATED22/03/2013 THROUGH WHICH THE SALES AMOUNTING TO RS. 15,31,66,0 00/- AND RS. 1,82,62,000/- WERE RECORDED BY THEM IN THEIR BOOKS OF ACCOUNTS. I FAIL TO UNDERSTAND THAT ON WHAT BASIS THESE COMPANIES HAVE DECLARED THE SALE OF LAND UNDER CONSIDERATION IN THE ASSESSMENT YEAR 2013-14, WHEN THE SALE DEED WAS REGISTERED ON 09/05/2013 ONLY I.E. IN THE FY 2013-14 RELEVANT TO THE AY 2014-15. IT APPEARS THAT THE ENTRIES IN THE BOOKS OF ACCOUNTS OF THE SELLER COMPANIES HAVE BEEN MADE TO EXPLAIN THE CASH RECEIVED BY THE APPELLANT FROM SHRI ADITYA MALPANI AS STATED IN THE SEIZED DOCUMENTS UNDER CONSIDERATION. HOWEVER, THE SAME CANNOT BE AC CEPTED IN VIEW OF THE DETAILED REASONS MENTIONED EARLIER. IT IS ALSO TO B E NOTED THAT THE APPELLANT WAS ALSO A DIRECTOR IN A NUMBER OF COMPANIES DEALIN G IN REAL ESTATE. IT IS PERTINENT TO MENTION HERE THAT AS PER THE SEIZED DO CUMENTS AND AS ADMITTED BY THE SELLER COMPANIES, THE TOTAL CASH PA YMENT WAS TO THE TUNE OF RS. 8,28,50,000/-, WHEREAS, THE CASH RS. 6,28,50 ,000/- WAS STATED TO BE PAID BY SNG GROUP/ADITYA MALPANI. THE AO IS HEREBY DIRECTED TO INFORM TO THE AO OF SNG GROUP (SNG ESTATE AND YADHUVANSHI) AN D M/S CHETANYA/SALUJA ACCORDINGLY. THE QUESTION IS WHEN T HE BUYER HAS MADE CASH PAYMENTS TO THE EXTENT OF RS. 6,28,50,000/- ON LY, THEN WHO HAD MADE THE BALANCE CASH PAYMENT OF RS. 2 CRORE. IT IS FURT HER NOTED THAT SHRI S N GUPTA, IN HIS STATEMENT HAS NOT CONFIRMED THE TRANS ACTIONS STATED ON THE SEIZED DOCUMENTS. IN FACT, HE DID NOT EVEN CONFIRM THE AMOUNT OF TRANSACTION FOR PURCHASE OF PROPERTY AT AJMER ROAD. ON THE OTHER HAND, IN HIS STATEMENT, IT WAS STATED BY SHRI ADITYA MALPANI THAT HE HAS PAID THE SUM OF RS. 9,46,50,000/- STATED ON THE SEIZED DOCUM ENTS FOR PURCHASE OF ITA 442 & 443/JP/2018_ ARVIND GOTEWAL VS ITO 16 LAND FOR SNG GROUP AND HE DID NOT SPECIFY THAT THE SAID PAYMENTS WERE MADE FOR PURCHASING LAND FROM M/S CHETNAYA/SALUJA. THEREFORE, IN VIEW OF THE ABOVE DISCUSSION, CONDUCT OF THE APPELLANT AND THE FINDINGS OF THE AO AS RECORDED IN THE ASSESSMEN T ORDER, IT IS HELD THAT THE AO WAS JUSTIFIED IN MAKING ADDITION OF RS. 5.68 CRORE TO THE INCOME OF THE APPELLANT AND HENCE, THE SAME IS HEREBY SUSTAIN ED. THE ABOVE FINDING GIVEN BY THE LEARNED CIT(A) IS CO NTRARY TO THE FACTS OF THE CASE AS THE ASSESSEE WAS NOT OWNER OF LAND. THE LEA RNED CIT(A) DID NOT CONSIDER THE STATEMENT OF SHRI SATYA NARAYAN GUPTA AS WELL AS SHRI ADITYA MALPANI ON THIS ACCOUNT. SHRI SATYA NARAYAN GUPTA A ND ADITYA MALPANI HAS CATEGORICALLY STATED THAT THEY HAVE MADE PAYMENTS O N BEHALF OF CHAITNAYA BUILDCON PVT. LTD. AND SALUJA CONSTRUCTION COMPANY FOR THE PURCHASE OF LAND IN JAIPUR. M/S CHAITANYA BUILDCON PVT. LTD. AN D M/S SALUJA CONSTRUCTION COMPANY HAS ACCEPTED THAT THE PAYMENT WAS DULY ACCOUNTED FOR IN THEIR BOOKS OF ACCOUNTS AND THE SAME HAS BEE N RECEIVED THROUGH THE ASSESSEE FROM SHRI SATYA NARAYAN GUPTA AGAINST SALE OF LAND. THE ASSESSEE HAS ALSO SHOWN COMMISSION INCOME IN HIS RETURN THAT WAS ALSO ACCEPTED BY THE LEARNED ASSESSING OFFICER. MOREOVER THE LEARNED CIT(A) ON PAGE 15 OF THE ORDER HAS ALSO GIVEN DIRECTION TO INFORM ASSESSING OFFICER'S OF SNG GROU P AND M/S CHAITNAYA BUILDCON PVT. LTD AND M/S SALUJA CONSTRUCTION COMPA NY FOR THE DISCREPANCIES FOUND IN THE STATEMENT OF CASH PAYMEN T AND RECEIPT ON THIS ACCOUNT. WHEN THE LEARNED CIT(A) HAS GIVEN DIRECTIO N FOR THIS AND THIS MEANS THE TRANSACTION PERTAINS TO THEM. ACCORDING T O LEARNED CIT(A) THE PURCHASE AND SALES TRANSACTIONS ARE BETWEEN SATYA N ARAYAN GUPTA (SNG GROUP) AND YADUVANSHI GROUP (M/S CHAITNAYA BUILDCON PVT. LTD AND M/S SALUJA CONSTRUCTION COMPANY). THEN HOW THE ADDITION CAN BE SUSTAINED IN ITA 442 & 443/JP/2018_ ARVIND GOTEWAL VS ITO 17 THE HANDS OF THE ASSESSEE. THEREFORE THE WHOLE ADDI TION DESERVES TO BE DELETED. 6. ON THE OTHER HAND, THE LD CIT DR HAS RELIED ON TH E ORDERS OF THE AUTHORITIES BELOW. 7. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL AVAILABLE ON THE RECORD. A SEARCH AND SEIZURE OPERATION WAS CA RRIED OUT AT THE PREMISES OF SHRI ADITYA MALPANI AND SNG GROUP ON 26 /2/2014. LOOSE PAPERS WERE FOUND AND ON THE BASIS OF WHICH, ADDITIO NS HAVE BEEN MADE. IN THESE LOOSE PAPERS, AMOUNT OF CASH AND CHEQUE WAS WRITTEN WITH DATES. IN THE STATEMENT, SHRI ADITYA MALPANI HAS STATED TH AT THIS PAPER HAS RECORDING OF PAYMENTS MADE IN RESPECT OF LAND PURCH ASED AT GARDEN ESTATE, D-BLOCK, MAHAPURA, AJMER ROAD, JAIPUR BY SN G GROUP AND YADUVANSHI LANDBASE PVT. LTD. THROUGH SHRI ARVIND G OTEWALA (THE ASSESSEE). SHRI SATYA NARAYAN GUPTA OF SNG GROUP HA S ALSO STATED THAT THIS PAPER IS IN RESPECT OF PAYMENTS MADE BY HIM IN RESPECT OF LAND PURCHASED AT AJMER ROAD FROM SALUJA GROUP OF COMPAN IES. HE ALSO STATED THAT THE REGISTRATION OF THE LAND HAS ALSO BEEN COM PLETED. THESE STATEMENTS ARE FILED IN THE PAPER BOOK. THE ASSESSEE ARVIND GOTEWALA WAS AUTHORIZED BY SALUJA CONSTRUCTIONS COMPANY LTD., 30 - COMMUNITY CENTRE, BASANT VIHAR, NEW DELHI AS WELL AS BY CHETANYA BUILD CON PVT. LTD. AT THE SAME ADDRESS FOR EXECUTING THE SALE OF LAND SITUATE D AT MAHAPURA, JAIPUR ITA 442 & 443/JP/2018_ ARVIND GOTEWAL VS ITO 18 TO SNG REAL ESTATE PVT. LTD. AND YADUBANSHI LANDBAS E PVT. LTD.. A COPY OF RESOLUTION PASSED BY THESE COMPANIES AUTHORIZING TH E ASSESSEE SHRI ARVIND GOTEWALA FOR EXECUTING THE SALE DEED WERE ALSO AVAILA BLE IN THE PAPER BOOK. THE LAND WAS SOLD BY CHETANYA BUILDCON PVT. LTD . TO SNG REAL ESTATE PVT. LTD.. THE SALE DEED WAS SIGNED BY ARVIND GOTEWAL ON BEHALF OF CHETANYA BUILDCON PVT. LTD.. SIMILARLY, SALUJA CONS TRUCTIONS COMPANY LTD. ALSO SOLD LAND THROUGH ARVIND GOTEWAL I.E. PORTION TO SNG REAL ESTATE PVT. LTD. AND TO YADUVANSHI LANDBASE PVT. LTD.. TH E AMOUNT REFLECTED IN THE SEIZED MATERIAL IS ALSO ACCOUNTED FOR IN THE BO OKS OF CHETANYA BUILDCON PVT. LTD.. THE AMOUNT OF CHEQUES AND CASH REFLECTED IN THE SEIZED MATERIAL ALSO REFLECTED IN THE BOOKS OF CHETANYA BUILDCON PV T. LTD. AND SALUJA CONSTRUCTION COMPANY LTD.. THE DETAILS OF THE SAME A RE IN THE WRITTEN REPLY PRODUCED (SUPRA) OF THE ASSESSEE. THE ENTIRE P AYMENT INCLUDING THE CASH REFLECTED ON THESE PAGES IS FULLY ACCOUNTED FO R IN THE BOOKS OF SELLER CHETANYA BUILDCON PVT. LTD. AND SALUJA CONSTRUCTION COMPANY LTD.. IN SUCH A SITUATION, THE CLAIM OF THE ASSESSEE THAT HE WAS WORKING JUST AS A AUTHORIZED PERSON TO FACILITATE THE REGISTRATION FO RMALITIES APPEARS TO BE GENUINE. THE LAND TOWARDS WHICH PAYMENTS WERE MADE WAS OWNED BY CHETANYA BUILDCON PVT. LTD. AND SALUJA CONSTRUCTIO N COMPANY LTD.. THE AMOUNT OF CASH/CHEQUE PAID BY BUYER ARE REFLECTED I N BOOKS OF SELLERS. THUS THERE IS NO SCOPE TO MAKE ADDITION IN THE HANDS OF ASSESSEE WHO WAS ITA 442 & 443/JP/2018_ ARVIND GOTEWAL VS ITO 19 ACTING JUST AS AUTHORIZED AGENT. IN SUCH A SITUATIO N, IN OUR CONSIDERED VIEW, THERE IS NO SCOPE FOR MAKING ADDITION U/S 69A OF THE ACT IN THE ASSESSEES HAND. THEREFORE, THE APPEAL OF THE ASSESS EE IS ALLOWED. 8. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 27/07/2018. SD/- SD/- FOT; IKY JKO HKKXPAN (VIJAY PAL RAO) (BHAGCHAND) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 27 TH JULY, 2018 *RANJAN VKNS'K DH IZFRFYFI VXZSFKR @ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ @ THE APPELLANT- SHRI ARVIND GOTEWAL, JAIPUR. 2. IZR;FKHZ @ THE RESPONDENT- THE ITO, WARD 3(2), JAIPUR. 3. VK;DJ VK;QDR @ CIT 4. VK;DJ VK;QDRVIHY @ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ @ DR, ITAT, JAIPUR 6. XKMZ QKBZY @ GUARD FILE (ITA NO. 442 & 443/JP/2018) VKNS'KKUQLKJ @ BY ORDER, LGK;D IATHDKJ @ ASST. REGISTRAR