HARJEEV AGGARWAL Vs. JOINT COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THESE cross -appeals are directed against the order of the Commissioner (Appeals), dated 13 -2 -2002.

(2.) THE facts are that a search was conducted on a specific information received from the Investigation Wing that a property No. C -104, Naraina Vihar, Delhi, owned by Shri Arvind Seth, NRI was being sold for Rs. 86 lacs out of which only Rs. 12 lacs were paid by cheque and the balance was to be paid in cash. The search resulted in recovery of Rs. 42.50 lacs and 30,000 US Dollars from Shri Arvind Seth of N -29, Green Park, New Delhi. Copy of the agreement to sell and the part payment receipt confirming the sale consideration were found and seized. Shri Arvind Seth, the seller, admitted in his statement recorded during the course of the search that he had received total consideration of Rs. 86 lacs out of which Rs. 12 lacs by way of cheque and Rs. 74 lacs in cash. Shri Arvind Seth confirmed that he sold property No. C -104, Naraina Vihar, New Delhi to Shri Harjeev Aggarwal of C -108, Naraina Vihar for a total sum of Rs. 86 lacs. He, however, admitted that he has received so far only Rs. 66 lacs and the balance of Rs. 20 lacs were still owed to him by Shri Harjeev Aggarwal though he had signed the receipt for the total sum of Rs. 86 lacs consisting of Rs. 74 lacs in cash and Rs. 12 lacs by way of cheque. On the basis of this information, a search was carried out at the premises of Shri Harjeev Aggarwal on 2 -2 -1999. His statement was recorded and it was admitted by him that he entered into a deal for purchase of C -104, Naraina Vihar for a sum of Rs. 86 lacs He further confirmed that a sum of Rs. 74 lacs was paid in cash and Rs. 12 lacs by way of cheque. Shri Harjeev Aggarwal by his letter dated 5 -2 -1999, admitted that out of Rs. 86 lacs, Rs. 74 lacs were paid as follows :

(3.) MRS . Anita Aggarwal made payment of Rs. 29 lacs to Arvind Seth for purchase of first floor of above property the source of which is as under :