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2013 (6) TMI 600 - ITAT DELHIDisallowance of 10% of unverifiable construction expenses - CIT(A) deleted the addition - Held that:- AO made the addition on an estimate and adhoc basis, there is no finding, observation or material to justify such estimate which is purely an adhoc guess work. CIT(A) has rightly deleted the same. Against revenue. Addition of unexplained investment in the hands of assessee - Held that:- The documents in question have been owned and explained by assessee's son already assessed at an undisclosed income of Rs. 2,16,42,960/-. The statement of shri Pawar has not been controverted. Besides the accounts of the son have been accepted by the AO except an adhoc addition of 10% expenses which has already been deleted. Once these evidences are not in question the explanation offered by the assessee and has son cannot be outrightly rejected. Mr. Pawar has confirmed the renegotiation of prices of plot thus buyer and seller both agree to the same price, comparable sale instances which are registered documents also support the price. Assessee's son Mr. Ashish Aggarwal being a building contractor, fact of construction of the house for Mr. Pawar is not in doubt, thus presumption u/s 292 C has been discharged by the assessee. Besides the deference if any emerges from the books of the assessees son and not the assessee himself. Further, the plot is not purchased by assessee alone but his wife also, a fact which has not been disputed. Thus, the incriminating document belongs to son and not assessee, discrepancy, if any, cannot be attributed to assessee. Further, the part of the plot ownership belongs to his wife for which also addition cannot be made in the hands of assessee. It is pertinent to appreciate that father and son have already paid taxes on undisclosed income of Rs. 2,16,42,960/-, there is no indication of existence of corresponding assets thus the possibility of telescoping also cannot be ruled out. Thus the impugned addition cannot be made in the hands of the assessee. Against revenue.
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