IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘H’: NEW DELHI BEFORE, SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER ITA No.189/Del/2021 (ASSESSMENT YEAR 2012-13)

Assessee by Shri Vibhu Gupta, Adv.

Department by Ms. Sapna Bhattia, CIT-DR Date of Hearing 17/01/2024 Date of Pronouncement 16/04/2024

ORDER

PER ANUBHAV SHARMA, JM:

This appeal of the Assessee arises out of the order of the Learned Commissioner of Income Tax (Appeals)-IV, Kanpur [hereinafter referred to as ‘Ld. CIT(A)’] in Appeal No.CIT(A)-

IV/KNP/10041/DCIT-CC/Noida/2016-17/567 dated 31/10/2018 against the order passed by Learned Deputy Commissioner of Income Tax, Central Circle, Noida (hereinafter referred to as the ‘Ld. AO’) u/s 143(3)/153C of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) on 18/03/2016.

2. The assessee is an individual deriving income from salary, commission and also income from other sources and for the previous year relevant to the assessment year 2012-13, the assessee filed his return declaring income of Rs.33.64.810. Search and seizure operation under section 132 of the Act was carried out in the case of M/s. Shubhkamna Buildtech Pvt. Ltd. on 09.10.2013. Proceedings under section 153C of the Act were initiated vide notice dated 07.12.2015 after recording the satisfaction for initiation of proceedings.

2.1 The case of Revenue is that during the course of search and seizure operation in the case of M/s. Shubhkamna Buildtech Pvt. Ltd. at 102, Star House, Sector-4. Noida, incriminating documents were found and seized. Annexure LP-2, was relied by AO as there is an alleged agreement between Sh. Vipul Gupta So Sh. Harsh Deep Gupta R/o D-703. Royal Residency, Sector-44, Noida and Sh. Buti S/o Sh. Arjun Rio Village Momna Thal Pargana Dankaur Tehsil and District Gautam Budh Nagar on 20.03.2012. The agreement pertains to sale of land area of 300 sq. metres and the total consideration mentioned in the agreement is Rs.27,00,000/-, Shri Vipul Gupta made payment of advance of Rs.24,00,000/- through cheque nos. 893987 and 893086 on 20.03.2012. Further, on page 36 of Annexure LP-2 paper/document was seized as per which Sh. Vipul Gupta purchased the said property for Rs.90 lacs and made payment of Rs.24.30 lacs through cheque and the remaining amount through cash to Shri Buti for purchase of the said land. Similarly on page 36 of Annexure LP-2, there are details of purchase of another plot measuring 300 sq meters by Shri Vipul Gupta from Shri Jay Chand and Jai Singh. Shri Vipul Gupta admitted the payment of cash and offered Rs.87,00,000 for taxation.

2.2 In the impugned assessment completed vide order dated 18.03.2016 passed under section 143(3)/ 153C of the Act, income of the appellant has been assessed at Rs.1,59,64,810 as against income of Rs.33,64,810 declared by the appellant. While assessing the income, the assessing officer made addition of Rs. 1,26,00,000 under section 69 of the Act on the alleged ground that the said amount represents unexplained investment made by the appellant.

2.3 On appeal, the CIT(A), vide impugned order dated 31.10.2018, confirmed the addition made by the assessing officer. Against the aforesaid order of the CIT(A), the Assessee is now in appeal before the Tribunal raising following grounds;

“1. That the ld. CIT(A) erred in upholding the addition of Rs.1,26,00,000/- made by AO u/s 69 of Income Tax Act, 1961 merely on surmises and conjecture and without considering and appreciating the evidence and arguments submitted before him and the AO.

2. That the ld. CIT(A) erred in law in not appreciating the law against before him.

3. That the ld. CIT(A) erred in law in rejecting the appeal arbitrarily and in utter disregard of the submission m