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2012 (12) TMI 636 - ITAT HYDERABADRejection of books of account - income estimation @ 8% on gross receipts - Sub-contract work - Held that:- AO did not have any incriminating material before him which was found as a result of search on the basis of which he could have come to a conclusion that the books of accounts maintained by the assessee were not correct. In the absence of any incriminating material, the AO is not justified in rejecting the books of account and estimate income in proceedings initiated u/s 153A, when regular assessment has been completed accepting the books of accounts. Unexplained Investment - Held that:- On perusal of materials available on record, it is seen that the assessee has explained that the amount of Rs.55 lakhs given as advance to the prospective seller of the land was pooled together from different persons by his father and the entire amount was paid by his father i.e. Rs. 25 lakhs by cheque from the joint account held with the assessee and balance amount of Rs.30 lakhs by way of cash by his father to the prospective seller Sri Saibabaiah. It is also a fact available on record that the receipt was executed by Sri Saibabaiah in the name of the assessee’s father, Sri N. Ramanaa Reddy. However, the source of this amount of Rs.55 lakhs stated to have been pooled together from different persons, have not been properly enquired into. No material has been brought on record with regard to the fact that the persons who stated to have advanced the amounts were having sufficient source of income or not as this fact has neither been examined by the AO nor the CIT (A) it is proper to restore the matter back to the file of AO who shall make proper enquiry to find out the source of Rs.55 lakhs given as advance for purchase of the land.
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