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2012 (9) TMI 49 - ITAT, COCHINUndisclosed agriculture income - Held that:- In the absence of any material to support the claim of the assessee towards agricultural income, the assessing officer has taken the same as undisclosed income - when the assessee claims that the agricultural income was earned it is for the assessee to support that the income was earned during the year under consideration. Moreover, what was said to be acquired additionally was 8 acres of rubber estate and 10.28 acres of coconut, areca nut, pepper, plantain, etc. Out of this, the assessee could not have earned so much agricultural income as disclosed in the block return. But the fact remains is that the assessee has invested the money in the partnership firm, therefore, the same has to be necessarily added as undisclosed income - against assessee. Addition on undisclosed income - Held that:- It is not in dispute that Pazheri Communication was a proprietory concern but the income from this proprietory concern was not disclosed to the department earlier which was admittedly unearthed during the course of search operation. During the course of search operation the profit and loss account and balance sheet for the period 01-04-2001 to 31-03-2002 was found relying on which AO computed the undisclosed income. It is not the case of the assessee that the balance-sheet and profit & loss account found during the course of search operation does not relate to the assessee - addition to income is thus confirmed - against assessee. Addition towards capital gain - Held that:- CIT(A) conclusion that the assessee has admitted Rs.32,03,000 in addition to his share of capital gain already disclosed in the return of income and thus the addition made by the AO to the extent of Rs.35,78,857 is not correct is without application of mind. In fact, there was no discussion in the order. The CIT(A) has to discuss the matter on merit and record his reasoning either for accepting or not accepting the claim of the assessee - the issue with regard to capital gain is remitted back to the file of the CIT(A). Deficiency found in the cash flow statement filed by Smt. P Khadeeja has to be treated as undisclosed income of the assessee - Held that:- The cash flow statement filed by Smt. P Khadeeja cannot be the basis for making addition in the hands of the present assessee. As rightly pointed out by the CIT(A) in the absence of any material found during the course of search operation, the deficiency found in the cash flow statement of Smt. P Khadeeja represents her own income - in favour of assessee.
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