Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (8) TMI 165 - ITAT MUMBAIAddition of gift - unexplained source - ingenuity of transaction - Held that:- The assessee has filed complete details in respect of the gift of ₹ 1,00,000/-, which was received by the assessee from the donor Shri. Sanjay Jethava by account payee cheque. It is also a fact that the assessee as well as the donor Shri. Sanjay Jethava both are assessed to tax and this gift is reflected in the respective capital account and balance sheet, which are enclosed with the return of income filed in with the department. Once this is the position the issue is clearly covered in favour of assessee and against the Revenue by the decision of Hon’ble Bombay High Court in the case of Continental Warehousing Corporation (Nhava Sheva) Ltd. (2015 (5) TMI 656 - BOMBAY HIGH COURT ). Unexplained investment/expenditure in renovation /purchasing of Flat - Held that:- Almost profit to the extent of ₹ 14,00,000/- is earned in A.Y. 2004-05 because the year mentioned is 2004 while distributing the profit as per the capital account seized. Anyhow, the assessee has earned the total profit of ₹ 30,25,282/- in a benami firm M/s Nimbeshwar Creation and admittedly, the assessee’s share to the extent of 67% and the profit accordingly workout is ₹ 20,26,938/-. The assessee admitted and offered a sum of ₹ 15,26,938/- in the relevant A.Y. 2004-05 and remaining sum of ₹ 5,00,000/- in A.Y.2005-06. As the facts gathered from seized material, we are of the view that a reasonable view is to be adopted and reasonable view seems that the profit of ₹ 15,26,939/- declared by assessee is to be assessed in 2004-05 and this is to be telescoped against the investment in renovation/ acquisition of house property of ₹ 15,00,000/- i.e. House No. 601, 6th Floor, A-Wing, Suparshava Apts., opp. Orbit Towers, Raamchandra Sudkoji Sawant Chowk, Elphistone Road, Mumbai. Accordingly, we direct the AO to re-compute the income and assessee the income as declared by the assessee being profit earned from M/s Nimbeshwar Creation amounting to ₹ 15,26,939/- and give telescoping effect to the same against the investment in purchase / renovation of House. This issue of assessee’s appeal is allowed. Undisclosed jewelry found from the assessee - Stridhan of the wife - Held that:- There is a small amount of jewelry of ₹ 1,79,560/-. Value of total jewelry found is ₹ 1,79,560/- which is much less than 500 gram of the jewelry according to the value as on the date of search. The assessee claimed that this is Stridhan, and we have no reason to disbelieve the same for the reason that the quantum of jewelry is very less. Accordingly, we delete the addition in entirety and allowed this issue of assessee’s appeal.
|