Additions upheld as assessee told illusionary tale for receiving advance under an unsigned sales agreement

Section 69A of the Income-tax Act, 1961 - Unexplained moneys (Advance money) - Assessment year 2001-02 - In course of assessment, Assessing Officer found that assessee had received certain amount from 'P' Ltd. - Assessee's case was that said amount was received as advance money for sale of property to 'P' Ltd. - According to assessee, since sale agreement could not materialize, advance money was forfeited - AO found that sale agreement was neither signed by assessee, nor was it registered - Further, no sale deed even upto date of assessment order was executed - Even summons issued to witness to sale agreement returned back with remarks 'incomplete address - Assessing Officer, thus, treated amount in question as unaccounted money and added same to assessee's taxable income - Tribunal upheld order of Assessing Officer - Whether on facts, findings recorded by authorities below did not require any interference - Held, yes [In favour of revenue]

Refer:[2014] 45 taxmann.com 276 (Allahabad)

HIGH COURT OF ALLAHABAD

Swami Sharan Garg
v.
Commissioner of Income-tax, Meerut