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2017 (12) TMI 416 - AT - Income TaxUnexplained investment from accumulated savings of agriculture income - Held that:- No agriculture income was shown in the return of income filed on issue of notice under section 142(1) of the Act. The assessee did not have any evidence of accumulation of past agriculture income. Merely because assessee was holding agricultural land holdings of 20 bigas would not prove that assessee earned any agricultural income or has any past savings so that to make any investment in the property. In the absence of any evidence on record, no further interference is called for in the matter. The Ld. CIT(A) has already given sufficient benefit of ₹ 55,000 to the assessee. This ground No.2 of appeal of assessee is dismissed. Addition on account of gifts received from Shri Karan Singh Tyagi and Shri Mukesh Tyagi - Held that:- there is nothing on record to show as to what was the financial capacity of the donors and the creditworthiness of the donors, what kind of relationship the donors had with the assessee, what were the source of funds gifted to the assessee and whether they had any capacity of giving such huge amount of gift to the assessee. Thus, the assessee failed to prove the basic ingredients of genuineness of gifts in the matter. It, therefore, appears that the assessee when cornered by the Revenue Department came up with an afterthought story to explain investment in property through the gifts from the relatives. Therefore, it is clear that gifts in the matter are not genuine. Gifts are arranged affairs of the assessee. The assessee failed to prove the creditworthiness of the donors and genuineness of the gifts in the matter. The additions were rightly made by the authorities below. Addition of difference on account of investment in cost of construction of banquet hall as per DVO report - Held that:- Restore this issue to the file of A.O. with a direction to apply UP PWD rates for the purpose of ascertaining the cost of construction of investment in construction of banquet hall. The A.O. shall re-decide this issue after giving reasonable, sufficient opportunity of being heard to the assessee. Ground No.4 of appeal of assessee is treated as allowed for statistical purposes.
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