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2016 (5) TMI 1381 - ITAT JAIPURUndisclosed income of the appellant - addition on the statement of the appellant recorded u/s 131 - Held that:- In the present case, the appellant has not produced any material to show that the admission made by him and corroborated by the statement of Shankar lal Khandelwal were incorrect. Once there is a clear admission, voluntarily made, on the part of the appellant, that would constitute a good piece of evidence at the hands of the Revenue authorities. Further, once the appellant has admitted to the undisclosed income and surrendered the same, Revenue has refrained from enquiring any further into attendant circumstances. The theory of preponderance of probabilities as canvassed by the ld AR doesn’t advance the case of the appellant in the facts of the present case. The statements recorded u/s 131 of the appellant and corroborated by the statement of Shri Shankar lal Khandelwal recorded u/s 132(4) of the Act are thus clearly relevant and admissible as evidence against the appellant. Thus we are of the considered view that the addition of undisclosed income has been rightly made and confirmed by ld CIT(A). The ground taken by the appellant is accordingly dismissed. Undisclosed investment u/s 69 - Held that:- Section 69 of the Act provides that where the appellant has made an investment which is not recorded in the books of accounts, if any maintained by the appellant and the appellant offers no explanation about the nature and source of investment or explanation so offered by the appellant is not satisfactory in the opinion of the AO, the value of the investment so made shall be deemed to be income of the appellant for the said financial year. On reading of the relevant provisions, we find that there is nothing which suggest that where the source has been explained and there is some time gap between the receipt and the ultimate utilisation, that would call for disallowance under section 69 of the Act. All it provides is that the appellant has to provide an appropriate explanation regarding the nature and source of investment which has been duly provided by the appellant in the instant case. In light of the same, we delete the addition as undisclosed investment u/s 69 of the Act Treatment of agricultural income treated as income from other sources - Held that:- Undisputedly, the appellant owns agricultural land situated in Fatehpur Tehsil Sikar District and he has consistently been declaring agriculture income of past couple of years. From the perusal of ld CIT(A)’s order, it is noticed that the appellant has declared agriculture income ₹ 1,16,400/- during the year under consideration as against agricultural income of ₹ 1,10,500 in AY 2007-08 and ₹ 80,500 in AY 2006-07. There is thus no major variation of agricultural income that has been noticed vis-a-vis previous years which causes any suspicion in his mind that any other income has been shown in the garb of agriculture income. In view of the same following the past years where the agriculture income has been accepted by the Revenue, we delete the subject addition on account of agriculture income being treated as income from other sources. Appeal filed by the assessee is partly allowed.
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