Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (12) TMI 481 - AT - Income TaxAddition on account of undisclosed income - Assessee was engaged in the business of financing – Addition made on the basis of some loose papers relating to loan found during search – Assessee contended that advances were made out of cash balance available which was lent, refunded and re-lent and received back – Held that:- Very mere amount has been shown towards drawings and other expenses. During A.Y. 2004-05 there is negative cash balance. Considering the additional income declared by the assessee and in absence of maintenance of regular books of accounts an amount of Rs. 2 lakhs on estimate in our opinion may be allowed as set off for investment in financing out of the income disclosed. The grounds raised by the assessee are partly allowed. Addition on account of cash found as undisclosed income – Held that:- Since the assessee in his statement recorded u/s. 132(4) has categorically admitted that the cash found is his extra income for the A.Y. 2007-08 and since the funds available as per the cash flow statement has already been given credit for the financing business, therefore, no further benefit can be given to the assessee towards the cash found during the course of search. Upholding the addition made by the AO. Issue decides in favour of revenue. Unexplained investment u/s 69A - Addition on account of notings in the loose papers regarding purchase of jewellery – Assessee submit that inherited jewellery was given for remaking the new jewellery – Held that:- As it is clearly mention on loose papers that weight of old jewellery given for melting valued out of which new ornaments made, therefore, no justification on the part of the learned CIT(A) for sustaining the addition. Accordingly the same is directed to be deleted. Issue decides in favour of assessee
|