Search & seizure operation u/s 132 of the Income Tax Ac

This Income Tax Appellate Tribunal (ITAT) Delhi ruling addresses an appeal by the Revenue concerning a search and seizure operation under Section 132 of the Income Tax Act for the assessment year 2011-12. The Assessing Officer (AO) had made additions to the assessee's income, suspecting undisclosed cash payments ('on money') for property bookings. However, the ITAT found no cogent evidence to substantiate these claims, noting it was the company's first year of operation and that seized documents showed no discrepancies with recorded rates. Consequently, the Revenue's appeal was dismissed.

1IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH, ‘A’: NEW DELHI
(Through Video Conferencing)
BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER AND
MS. SUCHITRA KAMBLE, JUDICIAL MEMBER
ITA No.3563/DEL/2016
[Assessment Year: 2011-12]

Dy. Commissioner of Income
Tax,
Central Circle-28, Room
No.317, ARA Centre,
Jhandewalan,
New Delhi-110055

Revenue

vs

M/s ET Infra Developers Pvt.
Ltd.
E-9, Panchsheel Park,
New Delhi-110017

PAN-AACCE3646D

Assessee

Cross Objection No.277/Del/2016
(Arising out of ITA No.3563/DEL/2016)
[Assessment Year: 2011-12]

M/s ET Infra Developers Pvt.
Ltd.
E-9, Panchsheel Park,
New Delhi-110017

PAN-AACCE3646D

Assessee

Dy. Commissioner of Income
Tax,
Central Circle-28, Room
No.317, ARA Centre,
Jhandewalan,
New Delhi-110055

Revenue

Revenue by Sh. Satpal Gulati CIT-DR
Assessee by Sh. M.P. Rastogi, Advocate
Date of Hearing 13.05.2021
Date of Pronouncement 28.07.2021

ORDER

This appeal filed by the Revenue is directed against the order dated 31.03.2016 of the learned CIT(A)-29, New Delhi,
relating to Assessment Year 2011-12.

2.The company was incorporated on 13.04.2010. The directors of the company are Sh. Sushant Aggarwal, S/o- Sh. Ram Mohan Aggarwal R/o E-9, Panchsheel Park, New Delhi and Sh. Vaibhav Aggarwal S/o- Sh. Sushant Aggarwal R/o E-9, Panchsheel Park, New Delhi.

3.He noted that most of the bookings shown by the assessee is between Rs.5000/- to 6500/- per sq. ft. The average
rate of booking is declared @ Rs. 5,929/- per sq. ft. According to the AO, the assessee cannot be believed that most of the spaces were booked @ of 5000 to 6500 per sq.

4.According to the AO, the buyers, who invested their black money in cash, did not admit as the arrangement of
taking part of the consideration in cash is beneficial to both the parties.

5.We do not find any infirmity in the order of the learned CIT(A) on this issue of deleting the addition made by
the Assessing Officer. It is an admitted fact that this is the first year of the operation of the company and during the course of search no cogent or corroborative evidence was found to substantiate the receipt of “on money” from any of the buyers.

6.The various instances given by the Assessing Officer at para 4.2 of the assessment order, wherein, he issued summons to nine parties and these rates are already recorded in the books of account and there is no discrepancy.

7.So far as page No.10 of Annexure A-24 found and seized from C-1, Sector 16, Noida having cash receipt of
Rs.86,70,816/- for booking of Unit No.617 and 618 is concerned, we find the assessee has already demonstrated that
these are two independent units sold to two different persons and in fact the assessee has sold the above two flats @
Rs.6000/- per sq. ft.

8.In the result, appeal filed by the Revenue is dismissed and the Cross Objection filed by the assessee is partly allowed.

Order was pronounced in the open court on 28/07/2021.

Please find attached the enclosed file for the full judgement.