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2018 (6) TMI 494 - AT - Income TaxUnaccounted/ undisclosed income in respect rent received in cash - Held that:- As decided in assessee's own case for assessment year 2010-2011 Assessing Officer has clearly given a finding that the income against which the assessee wants them to be telescoped related to separate piece of loose papers and they have nothing to do with the seized paper with reference to which this addition has been made. Now the assessee is submitting that there has been no such rent receipt in cash. Merely making such a statement will not support the case of the assessee when incriminating material has been found. Furthermore, the assessee pleas that the assessee follows cash system of accounting. This also does not helps the case of the assessee. The assessment being based upon specifically identified loose paper which the assessee has duly agreed during the course of assessment cannot be said to be arbitrary. - Decided against assessee Addition being notional rent for Penthouse - Held that:- Assessee’s submission are that assessee was not having any other premises for office and this was only premises for use of office, has not been addressed by the authorities below. In our considered opinion, the assessee being a professional artist is entitled to have a proper office and storage space. Hence, in our considered opinion, this issue needs to be remitted to the file of the assessing officer. The assessing officer is directed to consider the issue afresh Addition on the basis of loose papers - unexplained cash payments - Held that:- As it is seen that the same is a scribbling for a real estate property of 5100 ft. total price this has been mentioned as ₹ 7 cr 65. There is also mention of cash ₹ 3.35 and cheque of ₹ 2.15. In this regard, the assessee’s case is that the said paper was only a proposal and was later on cancelled with the same party. The assessee entered into a new agreement for 2995.70 ft. for ₹ 4.65 crore. Assessee has duly submitted confirmation of payment and agreement for the new project. The cancellation of the cheques given for the earlier project have also been shown and conformed - The above said document cannot be said to be a conclusive proof of cash payment of ₹ 3.5 crores. The assessee's plea that the same is a proposal which was not carried through cannot be brushed aside in light of the confirmation from the parties involved. It is also on record that the assessee never purchased estate property of 5100 sq. ft. from the said builder. Hence, the claim that it was a proposal later on not carried through and cancelled is having sufficient cogency. No addition to be confirmed Telescoping of the income with the declaration of undisclosed income by assessee's mother - Held that:- Revenue's plea is not sustainable. Throughout the search assessment it has been noted that assessee's mother has been handling all the affairs of the assessee. When the Revenue can make additions in the hands of the assessee, on the basis of that it was so stated and accepted by the assessee's mother, there is no reason why such telescoping cannot be granted. Accordingly, we do not find any infirmity in the order of the ld. Commissioner of Income Tax (Appeals) as allowed telescoping of the income with the declaration of undisclosed income by her mother Undisclosed income - arranging of wedding functions - Held that:- Addition has solely been made on the basis of a statement obtained from the secretary of the assessee. There is no corroborative material whatsoever. A mere statement by the secretary cannot be said to be a conclusive proof of undisclosed income earned. Hence, we are of the considered opinion that the ld. Commissioner of Income Tax (Appeals) has correctly accepted the assessee’s submission in this regard and deleted the addition
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