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2012 (10) TMI 213 - AT - Income TaxNon giving reasonable opportunity to the assessee by the AO - Undisclosed income - search and seizure - Held that:- Though AO issued 3 to 4 show cause notices one after another without giving sufficient time to the assessee to file the necessary details, however, when the CIT(A) issued a remand order and the assessee was given another opportunity to file all the details and evidence as well as defend the case during the remand proceedings, then the said grievance of the assessee against the AO is no more exist. Accordingly, no substance or merit in the ground of the assessee and the same is dismissed - against assessee. Unexplained investment in paintings - Holding the assessee as Trader in paintings - Held that:- For AY 2003-04 only part payment was shown to be made as per the invoices seized during the search operation and despite the opportunities given by the CIT(A), the assessee failed to furnish any evidence to show that the balance payment was made by the ultimate purchaser and the company has received the commission income. The addition has not made solely on the ground that the assessee purchased and owned these paintings, but it was made on the ground that only part payment has been shown in the invoices, which are in the name of the assessee and therefore, the balance payment was made through hawala route - against assessee. Trader in paintings - For AY 2009-09 find force and merit on the point that some of the paintings belong to the company and written off because of low/commercial value, if the said claim of the assessee is supported by the relevant record. Both AO and CIT(A) have not examined the said factual claim of the assessee and rejected the same on technical grounds that the assessee did not declare the same at the time of search, thus set aside the issue of addition on account of unexplained investment in paintings for the assessment year 2008 – 09 to the record of AO to reconsider it afresh as assessee is at liberty to produce any evidence with regard to the valuation of the paintings - in favour of assessee for statistical purposes. Addition on account of low drawings - unexplained expenditure on account of personal household expenses under section 69C - Held that:- the issue requires a proper verification and examination at the level of AO - Also as regards the estimate of personal expenditure at Rs.40,000/- to Rs. 50,000/- per month by the CIT(A) the assessee is directed to produce the electricity bill and telephone bills for the relevant period before the AO in this respect. Unexplained source for purchase of land - Held that:- AO has made an addition of Rs. 4 lakhs as unexplained investment whereas in view of the new facts brought out by the assessee that the actual consideration paid for purchase of land is Rs. 15 lakh, the issue requires to be considered afresh. As that the issue was not properly verified by the authorities below and decided the same summarily accordingly the issue remitted back to AO for deciding the same after considering all the relevant facts and material. Unexplained increase in the capital account - addition on account of opening capital balance - Personal effect - Held that:- it is clear from the order of CIT(A) that the explanation of purchase and sale was rejected without examining the correctness of the same. Therefore, the issue is required to be examined on the point of correctness of the factual aspect as claimed by the assessee. Cash found in the locker - Held that:- It is clear from the record that the assessee never took this plea that the locker of HDFC Bank belongs to the company and not to the assessee. Even no record was filed to show this fact. Therefore, this fresh plea cannot be accepted without investigation of facts. Hence, no entertainment of this fact at this stage is required. In the absence of any material to show the availability of the funds to correlated with the cash found in the locker, no merit in the grounds of the assessee hence the same is dismissed - against assessee.
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