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2012 (7) TMI 584 - AT - Income TaxAddition on account of unexplained investment in the wrist watches - A.O. has made this addition on the ground that the appellant has not produced any bills or other evidence in support of the contention that these watches were covered with the withdrawals made by the family members of the appellant Held that:- There was sufficient withdrawals shown by the family members which could cover the purchase of the wrist watches - normally bills of such items like watches are not preserved for record - Assessing Officer has not made any specific or exact investigations or market enquiries which could establish the estimation of value of these watches - value of the wrist watches adopted by the Assessing Officer was arbitrary In favor of asssessee Addition made u/s 69A of the Act - search and seizure - cash was found at the residence of the assessee - assessee has stated during the search itself that the cash found belongs to MR. Educational Institution - A.O. has made this addition on the ground that sources of this cash have not been explained by the appellant Held that:- Cash books were duly produced before the A.O. Copies of the relevant pages of cash books were also filed by the appellant during the appeal proceedings as part of the paper book - If the A.O was not satisfied with the authenticity of the entries made in the cash books, some enquiries could have been made to prove so. However, in the absence of such enquiries or evidence, the A.O. cannot be said to be justified at all to make addition considering this cash to be unexplained In favor of assessee Addition made on account of unexplained investment u/s 69 of the Income-tax Act, 1961 and undisclosed income addition made on the basis of document seized during search - assessee has denied any relationship with the document at the time of search itself - The document is denied to be in handwriting of the assessee or handwriting of any family member Held that:- Revenue has failed to collect any corroborative material which could explain the real character of the transaction - document is not clear it does not give any conclusive and meaningful conclusion in respect of the transactions. It also does not establish the correct nature of the transaction. The revenue has failed to collect corroborative evidence to establish the correctness of the transaction recorded in the loose paper - appeal of the revenue is dismissed.
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