Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2010 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (2) TMI 867 - AT - Income TaxUnexplained investment in property - unexplained investment in the properties (50 per cent owned by Shri Ramesh Arora), which are not recorded in the regular books of accounts of Shri Ramesh Arora, was accepted and disclosed by him in his statement recorded during the course of search. Rest of 50 per cent of the investment of the property pertains to the assessee. However, the assessee has not given any explanation in respect of on money paid by him for purchase of the said property. Merely saying that the on money was not paid by him and the on money was paid by Shri Ramesh Arora only cannot be believable at this stage, as in the custom of society once the property is registered the on money has to be paid in advance. Here, the assessee said that he has not given the on money and the register has been executed without making the payment of on money. Held that:- AO merely considering the business relation between assessee and Arora Brothers presumed that since they have admitted payment of on money therefore, assessee might have also paid the on money. If Arora Brothers have not recorded any entry in their books of account as noted by the AO, how assessee could be blamed. The above conclusion of the AO is not supported by any material or evidence. The conclusion of the AO is purely based upon suspicion and surmises. It is settled law that suspicion howsoever strong may be could not take place of legal proof, appeal of the assessee is allowed.
|