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2012 (7) TMI 405 - AT - Income TaxAdditions on account of unexplained advances received - CIT(A)deleted the additions - Held that:- Since the amount was found at the time of search on 18/4/2007 the amount was pertaining to the assessment year 2008-09 and it cannot be added in assessment year 2007-08 - the status and background of the assessee and his family sufficiently proved that assessee’s father in law could have saved Rs. 75,000/- and in the affidavit, he has confirmed that he has handed over the cash to the assessee and was still lying with her unutilized - in favour of assessee. Addition on account of investment in painting - CIT(A)deleted the additions - Held that:- The valuation has done by the AO, who is not an expert in this regard and the contention of the assessee is cogent enough that AO should engage expert in this regard to make the valuation of these paintings - the declaration of gifts were not originally produced before the AO as it was not raised by the AO and the same were produced as additional evidence at the time of appellate proceedings, thus proving the authenticity of the gift declaration and no reason or evidence to disbelief the content thereof - that the paintings were received as gifts during the course of search, no documents have been found to indicate that the painting were received otherwise - no dispute regarding the value of the painting which has already been disclosed by the assessee in her return of income filed in response to notice u/s. 153A - in favour of assessee. Addition on account of commission on sale of painting - CIT(A)deleted the additions - Held that:- As assessee has not denied the fact that the sale of paintings to the tune of Rs. 42,12,595/- was effected through her, hand written page on the letter head of Artist seized at the time of search clearly shows that the assessee was getting commission @ 4% of the value of each art work transacted. Under the circumstances CIT(A) has erred in deleting the addition in this regard merely on the basis of the confirmation from Shakshi Art Gallery, that no commission was paid by them - in favour of Revenue.
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