Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (2) TMI 1204 - AT - Income TaxUndisclosed investment u/s.69 - payment of ‘on money’ for purchase of land admeasuring 3 acres 9 guntas - HELD THAT:- CIT (Appeals) in First Appellate Proceedings directed the AO to ascertain the status of income offered/taxed on substantive basis in the hands of other partners. The Assessing Officer in his report pointed that apart from Shri B.R. Patil no other partner of the firm has admitted investment in land in their respective return of income. As observed that it was the first year of existence of the firm and the land in question was purchased before registration of the partnership deed. Thus, in absence of income of its own, the firm could not have invested for purchase of land. Therefore, the investment has to be considered in the hands of the partner as their respective unexplained investment. Since, partners of the firm failed to respond to the notices issued by Assessing Officer, the entire investment of ₹ 15,45,00,000/- was added as unexplained investment u/s.69 of the Act, on protective basis in the hands of assessee partnership firm. It is an undisputed fact that the registered sale deed for purchase of land was executed on 10.10.2007 and the partnership deed was executed on 26.10.2007. Since, the partnership deed is subsequent to the date of purchase of land, the partnership firm by no means could have made investment for purchase of land. Consequently, no addition on account of unexplained investment in land purchased prior to existence of assessee (partnership firm) could have been made in the hands of assessee, not even on protective basis. No infirmity in the order of CIT (A), hence, the same is upheld and the appeal of Revenue is dismissed.
|