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2017 (6) TMI 346 - AT - Income TaxReopening of assessment under section 148 - Held that:- The proceedings under section 148 of the Act were initiated against the assessee. However, where the assessee had failed to furnish any return of income in response to the said notice issued under section 148 of the Act and in response to 142(1) /143(2) of the Act then, the assessee at this juncture cannot raise issue against re-opening of assessment. Hence, the ground of appeal No. 1 raised by the assessee is dismissed. Unexplained investment u/s 69 - Held that:- Addition of ₹ 5,00,000/- on account of unexplained investment for purchase of plot u/s 69 of the Act is upheld in the hands of the assessee, as the said plot is purchased in the name of two persons. The Ld. AR for the assessee has fairly conceded that balance sum of ₹ 5,00,000/- is to be added in the hands of other partner, Shri Arun Chachad. In the said case, appeal is pending before the CIT(A). Accordingly, addition of ₹ 5,00,000/- is upheld in the hands of the assessee. Disallowance of transport charges - Held that:- There is no merit in the plea of the assessee in this regard wherein the Ld. AR of the assessee had already accepted 5% of disallowance out of total lorry hire charges paid. Upholding the order of CIT(A), ground No. 3 raised by the assessee in appeal is dismissed. Disallowance out of total expenses on vehicles and telephone expenses - Held that:- Assessing Officer had disallowed 1/3rd of the expenditure of car and telephone totaling ₹ 76,413/-. The CIT(A) restricted the disallowance to 10% of the total expenses i.e ₹ 22,924/-. There is no merit in the ground of appeal No. 4 raised by assessee and hence, the same is dismissed. Addition on account of cash introduced in the firm’s account by the partners - Held that:- In appeal herein above, in the case of Jagatsingh Pratapsingh Jadhav, addition of ₹ 5,00,000/- on the same ground is upheld and accordingly, no other addition on the same transaction is to be made in the hands of the firm and the same is deleted. In respect of other partner, Shri Arun Chachad, addition of ₹ 5,00,000/- has been made and appeal is still pending before the CIT(A). The Ld. AR for the assessee has proposed that the addition made in the hands of the partners on account of their cash contribution be upheld. In case no addition is confirmed in the hands of Shri Arun Chachad, the balance addition of ₹ 5,00,000/- would be upheld in the hands of the assessee’s firm. Otherwise, in case it is added in the hands of the partner, no addition in the hands of the assessee, is valid. The Assessing Officer is directed to decide the ground No. 2 accordingly.
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