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2016 (7) TMI 1511 - AT - Income TaxValidity of enhancement action of the CIT(A) - power on the Commissioner of Income Tax (Appeals) to enhance the assessment u/s 251(1) (a) - unexplained source of income towards investment - new source of income discovered in the enhancement proceedings by the CIT(A) - HELD THAT:- In instant case is not about discovery of new source of income but re-appreciation of seized material placed before Assessing Officer to probe the source of income towards investment claimed by the assessee. Therefore, we find no reason to entertain the plea of lack of jurisdiction towards enhancement raised by the assessee. We concurrently note that the assessee could not demonstrate on merits by any tangible evidence on record in rebuttal that the purported loans were given to the friends and relatives and were actually recovered in cash to establish the nexus of loans recovered qua the investments toward land acquisition. We accordingly find it difficult to hold the case in favour of the assessee on merits since the primary onus has not been discharged by the assessee at all. In view of the aforesaid reasonings, the plea of the assessee on merits also deserves to be discarded. We simultaneously notice that the CIT(A) has enhanced the income by ₹ 70 lakhs whereas the controversy revolves around non-availability of ₹ 61.65 lakhs only. The source of balance unaccounted investment of ₹ 8.46 lakhs has already been duly offered and assessed by the Assessing Officer. Thus, the enhancement of assessed income requires to be restricted to ₹ 61.65 lakhs only. Thus, the assessee gets partial relief on this issue on merits.
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