Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (12) TMI 248 - AT - Income TaxNature of income - agricultural income - Held that:- The assessee is the owner of agricultural land and has claimed to have grown similar crops, we are inclined to direct the AO to accept ₹ 10,000 per acre as agricultural income. This issue is also treated as partly allowed. Disallowance of the assessee’s claim of deduction u/s 80C - Held that:- As gone through the certificate issued by the Bank of India and find that the loan is given for purchase of a flat. The nature of the said flat purchased by the assessee, is not mentioned in the certificate. It could be a residential flat also. In view of the same, we deem it fit and proper to remand this issue to the file of the AO with a direction to verify the nature of the property, and if it is found to be a residential property purchased by the assessee against which the assessee has been given loan by the Bank of India, then irrespective of the use of the building, the claim of deduction u/s 80C of the Act shall be allowed in respect of the repayment of the principal amount, of course subject to the maximum limit. Thus, the grounds of appeal for all the A.Ys on this issue are treated as allowed for statistical purposes. Enhancement of income as accretion to capital - Held that:- The assessee has not been maintaining any books of account prior to the date of search and has prepared the capital a/c and statement of affairs only from the A.Y 2005-06 onwards. It is seen that from the A.Y 2005-06 onwards, the assessee has shown opening capital and there is increase in capital year after year. The source is also explained as income from chit fund business and past savings. We therefore, deem it fit and proper to remand this issue in both the A.Ys to the file of the AO for verification of the above sources for increase in the capital. Addition made as unexplained investment based on the documents other than relating to chits, found during the course of search - Held that:- We find that the documents now filed by the assessee are only bank statements and the encumbrance certificates which are issued by the bank authorities and the govt. agencies respectively. In our opinion, these documents, being third party records, can be admitted. Similarly, for the A.Y 2011-12 also, the assessee has filed the additional evidence being the Bank A/c copy and the encumbrance certificate for the very same property. Therefore, we are inclined to admit the additional evidence filed by the assessee and remit the same to the file of the AO for verification and we direct the AO to consider the allowability of the assessee’s claim in accordance with the law. In the result, assessee’s ground of appeal for the A.Ys 2010-11 & 2011-12 against these additions are treated as allowed for statistical purposes.
|