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Issues involved: The judgment involves issues related to additions made by the Assessing Officer under section 68 and section 69A of the Income Tax Act for the assessment year 2006-07.
Addition u/s 68 - Unexplained cash credit: The assessee's appeal challenged the addition of Rs.11,54,160 as unexplained cash credit received from M/s. Laxmi Developers. The Assessing Officer treated this amount as unexplained credit liable to be taxed u/s 68 of the Act. The CIT(A) confirmed the addition, reducing it to the amount actually received. The appellant contended that the amount was part of the sale consideration for a plot, received through banking channels, and not an unexplained credit. The Tribunal agreed, noting the genuineness of the transaction and the reasonable explanation provided by the assessee. The addition was deleted, stating that the amount received was towards the sale of development rights and not taxable as unexplained credit u/s 68. Addition u/s 69A - Unexplained work in progress (WIP): The second ground of appeal involved the addition of Rs.5,47,879 as unexplained money u/s 69A of the Act, attributed to the difference in WIP figures in the profit and loss account and the balance sheet. The CIT(A) upheld the addition, disregarding the argument of double taxation raised by the appellant. The Tribunal found no reason to interfere, emphasizing that the addition was due to understating the value of an asset in the balance sheet, indicating incorrect accounts. The appellant's argument that profit had already been shown from the WIP was rejected, and the addition was confirmed. The appeal on this ground was dismissed. In conclusion, the Tribunal partly allowed the appeal, deleting the addition made under section 68 while confirming the addition under section 69A.
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