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2014 (7) TMI 1030 - AT - Income TaxUndisclosed payment to land owners Proper appreciation of facts and evidences not made - Held that:- The main contention of the assessee was that SNOA wanted to develop a housing scheme for which land was purchased from several land owners - About 28,500 sq. yard of land was transacted and alleged that SNOA had entered into a contract for purchase of land from different land owners - the question is that whether the transactions as appeared in the seized diary were in fact the transaction of SNOA or those transactions belonged to the assessee - it was expected from the AO to examine the books of accounts of SNOA, to see whether there was sufficient cash in the books of accounts before making an expenditure in cash or through cheque thus, the matter is remitted back to the AO - The queries cannot be treated as an exhaustive list and the AO, therefore, in his discretion can raise allied question to verify the claim of the assessee that the payment was not made by the assessee but by SNOA. Once the issue was restored back to the file of the First Appellate Authority, but at that time there was an apparent denial of opportunity to the assessee as prescribed under Rule 46-A by learned CIT(A) - even after the perusal of the Remand Report the questions/doubts as raised could not be removed thus, it is not only necessary but also justifiable to restore the matter back to the stage of investigation, i.e., the assessment stage so that the assessee as well as the Revenue both can go upto the hilt of the facts and thereupon can arrive at the correct conclusion Decided in favour of assessee. Addition made cash deposit in bank account source of income not appreciated Held that:- The assessee has not explained the exact details of the agriculture holding and the income earned there from - It was necessary on the part of the assessee to place on record the area/measurement of the agriculture holding duly supported by the evidence - Assessee was also required to show agriculture crop produced. Be that as it was - the assessee had produced bills during the course of assessment proceedings - the assessee had produced evidence to this extent confirming the agriculture income, therefore, the AO is directed to reduce the addition and rest of the amount is confirmed Decided partly in favour of Assessee. Investment for the purpose of visa Held that:- A deposit made for the purpose of obtaining Visa cannot be termed as an investment - A Visa may or may not be granted, therefore, the amount in question appears to be an expenditure and not an investment - undisclosed income has already been taxed coming out of the seized material, therefore, the expenditure for obtaining Visa can be set-off against that income the addition is set aside Decided in favour of Assessee.
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