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2013 (5) TMI 589 - AT - Income TaxUnaccounted purchase of plot - rejection of books of accounts - assessee pleaded that he had purchased a plot of land with funds provided by his second wife who gave him cash of Rs. 9 lakhs and her two brothers has also gifted him Rs. 4 lakhs on the eve of second marriage - Held that:- AO has written a letter dated 17.12.2008 to the assessee and provided him final opportunity to explain and said that as to why Rs. 12 lacs may not be added to his taxable income for the assessment year in dispute but assessee could not explain the source of Rs. 9.99 lacs and he has written a letter dated 22.12.2008 to the AO and surrendered Rs. 9.99 lacs as additional income for the assessment year in dispute. Assessee has explained only the source of Rs. 2,80,000/- which was given to the assessee by his second wife by selling residential house in 2001 on 23.03.2001. Thus Revenue Authority is wholly justified in making the addition of Rs. 9.99 lacs u/s 69 because assessee voluntarily surrendered Rs. 9.99 lacs vide his letter dated 22.12.2008 offered for taxation purpose. As regard to the addition of bank loan interest debiting in the Profit and Loss Account, which is said to be returned in installment by the assessee to the HDFC Bank, AO verified the same from HDFC Bank under Section 133(6) and the said bank informed that the loan in dispute was raised by assessee's son, Sh. Jasbir Singh, Prop. M/s Milap Foundry Works and not by the assessee for his own business purposes and he has acted simply as a guarantor for the same. Thus FAA has passed a well reasoned order by rightly upholding the addition in dispute - appeal filed by the assessee is dismissed.
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