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2017 (5) TMI 778 - AT - Income TaxAddition on statement made at the time of survey action u/s. 133A - Held that:- There is nothing on record to show that the statement of the assessee was recorded under coercion or threat. In such circumstances, the onus shifts to the assessee to prove that the statement given by him was wrong which is not the situation in the instant case. The statement of Mr. Mangilal Devashi was recorded u/s.132(4) of the Act which has got evidentiary value and as per that statement also, the amount was given by the assessee who had accepted it as his concealed income. As regards the statement made by the assessee during the course of survey, the CIT(A), Central VIII, Mumbai in his aforesaid order in case of the assessee for AY.2004-05 has held that "the statement of the assessee is on oath and is based on the entries recorded in the impounded documents. Accordingly we do not find any infirmity in the order of CIT(A). Accrued interest on the loans advanced and investments - Held that:- From the record, we found that in terms of documents found during course of survey u/s.133A, the AO found that assessee has not disclosed interest accrued on KVPs, investment in FDs, loans and advances and interest of loan advance to Shri M Joshi. Accordingly AO calculated interest on these deposits / investment / KVP and made the addition. No explanation was filed by assessee in support of these not declaring income on these FDs and KVPs etc., accordingly CIT(A) confirmed the action of the AO after having detailed observation at para 5. Nothing was brought to our notice by learned AR so as to persuade us to deviate from the findings recorded by lower authorities, accordingly ground raised by assessee is dismissed. Disallowance u/s.14A with Rule 8D - Held that:- Since, assessment year involved is 2006-07 which is prior to insertion of Rule 8D, therefore, we direct the AO to restrict the disallowance u/s.14A to the extent of 5% of the dividend income. We direct accordingly. Short term capital gain OR business income - Held that:- CIT(A) has dealt in great detail with each and every script dealt with by the assessee, its magnitude turn over and the frequency of purchases and sales and thereafter arrived at a conclusion that assessee’s claim of short term capital gain was not correct and held the same as business income. The detailed finding so recorded by CIT(A) has not been controverted by learned AR by bringing any positive material on record, accordingly we do not find any reason to interfere in his findings. Addition on account of deemed rent - Held that:- AO & CIT(A) has recorded detailed finding to support ALV of house and shops so arrived at. Nothing was placed before us by learned AR to controvert the findings of lower authorities. Accordingly we do not find any reason to deviate from the findings recorded by lower authorities. Disallowance u/s.14A read with Rule 8D - Held that:- We direct the AO to restrict the disallowance to the extent of exempt income which is to the tune of ₹ 5,75,408/-. We direct accordingly. Disallowance of set off of loss incurred in respect of speculation business, business loss and short term Capital Loss - Held that:- CIT(A) has recorded detailed finding for not allowing set off of such loss after observing that assessee has not filed relevant details either before the AO or before the CIT(A). CIT(A) also observer that even during the appellate proceedings, assessee has not furnished necessary details / explanation / submission supported by the documentary evidences. Accordingly, he held that assessee has not been able to discharge onus cast upon him in this regard. The detailed finding recorded by the CIT(A) at para 8.3.1 to 8.3.3 have not been controverted by learned AR by bringing any positive material on record. Accordingly, we do not find any reason to interfere in the order of CIT(A) for not allowing set off of loss
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