Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (7) TMI 131 - AT - Income TaxDetermination of total income - income taxable in the hands of firm or partners - Held that:- The investment has been made by the partners jointly prior to the formation of the partnership firm – the view taken by the CIT(A) is upheld that any addition on account of investment should only be considered in the assessment of the partners and not in the assessment of the partnership firm - revenue was not able to brought any material for the determination of the point – also in Commissioner of Income-Tax Versus Smt. PK Noorjahan [1997 (1) TMI 6 - SUPREME Court] it has been held that no addition of the magnitude is involved – thus, the order of the CIT(A) is upheld – Decided against Revenue. Difference in the cost of construction – Held that:- CIT(A) was of the view that the buyer of the property, Shri Girish Kumar, has confirmed the fact of ₹ 30-lakhs having been spent by him after taking possession of three floors of the building - this part of the investment cannot be taken as that of the assessee - If this amount is reduced from the value of cost of construction estimated by the Departmental Valuation Officer of ₹ 1.50 crores, the value remaining of ₹ 1,20,00,000 does not leave much of a margin above the cost of construction of ₹ 1,14,05, 509 disclosed by the assessee itself - the difference is less than 5%, the addition made by the AO is unjustified – revenue has not brought on record any evidence to indicate that the assessee has incurred any expenditure over and above what has been recorded in the books – the order of the CIT(A) is upheld that the additions made by the AO cannot be sustained – Decided against Revenue. Addition of capital introduced – Source not explained properly - Held that:- CIT(A) rightly deleted the addition made by the AO observing that the partners have invested the amounts from out of the existing assets as on 31.3.2007 and out of the income derived by them during the year - the investments were also properly recorded in the books of account of the partners and were also shown in the balance sheets filed by them along with the returns of income before the AO - In the absence of anything to the contrary brought on record by the Revenue to disprove the above findings of the CIT(A), there was no justification for the addition made by the AO – Decided against Revenue.
|