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2016 (7) TMI 512 - AT - Income TaxUnexplained investment in the pawning business by the assessee - Held that:- CIT(A) has recorded that the assessee was engaged in the pawning business over the last 35 years and therefore, the entire investment cannot be attributed to one year. He, therefore, opined that only 1/10th of the investment can be considered as attributable to the year under consideration which he worked out at ₹ 3,92,506/-. To this extent, we entirely agree with the finding of learned CIT(A). Thereafter, the CIT(A) did not sustain the addition of ₹ 3,92,506/- also on the ground that it was made out of the income from pawning business which the Assessing Officer has determined at ₹ 8,24,263/-. We also agree with the Assessing Officer that the income from pawning business can be reinvested in the pawning business in the subsequent year. CIT(A), while deciding the second ground, has reduced the income from interest of the pawning business determined by Assessing Officer at ₹ 8,24,263/- to ₹ 2,55,634/-. However, while considering the availability of funds for investment in the pawning business, he considered the income from interest as determined by the Assessing Officer. In our opinion, when he has reduced the interest income from pawning business, the funds available for investment in the pawning business would be the interest income as determined by learned CIT(A) and not the interest income as assessed by the Assessing Officer. It would not be out of place to mention that neither party is in appeal against the interest income determined by the CIT(A). Therefore, the interest income at ₹ 2,55,634/- as determined by the CIT(A) has become final. Therefore, in our opinion, the credit for the interest income as determined by the CIT(A) at ₹ 2,55,634/- only can be given for considering the investment during the year under consideration. We, therefore, sustain the addition of ₹ 1,36,872/- i.e., ₹ 3,92,506/- minus ₹ 2,55,634/-. - Decided partly in favour of revenue
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