ITAT AMRITSAR BENCH
Raman Mahajan, HUF
versus
Income-tax Officer, Ward 4(3), Amritsar
IT Appeal No. 182 (Asr.) of 2012
[ASSESSMENT YEAR 2007-08]
JANUARY 22, 2013
ORDER
Per Bench
This appeal of the assessee arises from the order of the CIT(A), Amritsar, dated 12.03.2009 relating to assessment year 2007-08. The assessee has raised following grounds of appeal:
“1. That the ld. CIT(A), Amritsar has grossly erred in confirming the addition of Rs. 2,33,332/- made by Income Tax Officer, Ward 4(3), Amritsar on account of dis allowance for expenditure of Rs.11,66,662/- @ 20% on the alleged payments made in violation of provisions of Sec. 40(A)(3) of the Income Tax Act.
2. That the ld. CIT(A), Amritsar has failed to appreciate that the ITO Ward 4(3), had failed to discharge the onus to prove that cash payments of Rs.11,66,662/- were made by the assessee at one time and not as claimed by the assessee.
3. That the ld. CIT(A), Amritsar has failed to appreciate the real import of the provisions of section 40A(3) of the Act and has ignored the fact that the payment were made bonafide and stood duly confirmed by the receiver in the purchase deed.”
2. The Ld. counsel for the assessee, Mr. Padam Bahl, CA has also raised additional ground of appeal, which reads as under:
“1. That the ld. CIT(A), Amritsar and the ld. A.O. have both failed to appreciate that the assessee had acquired & disposed the lands under Power of Attorney & had not executed any purchase deed entailing the provisions of Sec. 40A(3) of the Income Tax Act, 1961.”
3. The additional ground is admitted since the matter goes deep into the root of the matter and is a legal ground in view of the decision of the Hon’ble Supreme Court in the case of National Thermal Power Co. Ltd. v. CIT [1998] 229 ITR 383.
4. The brief facts in the grounds of the assessee and the additional ground of the assessee are that the assessee derives business income from dealings in real estate i.e. from sale and purchase of land and selling of land/plots after development. The AO found that the assessee has incurred expenditure by making cash payment exceeding Rs. 20,000/- other than by an account payee bank cheque or account payee bank demand draft to the following persons:
