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2019 (3) TMI 905 - AT - Income TaxCredit of surrender at the time of search in respect of addition u/s 69 regarding various property - Search on Harsingar Gutkha/Patel group - surrender was made by Shri K. N. Singh Patel for undisclosed income/investment - reference to the Valuation Officer - assessee claim credit for surrnederd was made by Shri K. N. Singh Patel - CIT(A) excluded investment in AY 2002-03 were not covered by the search period - main dispute between the parties is that the declaration of surrender made by Shri K. N. Singh, head of the family should be completely set off against the investments made by the assessee in various years - HELD THAT :- it is apparent that at the time of surrender, Shri K. N. Singh had owned up the investments made in the name of various family members including the assessee. There is no dispute regarding identification of property, as undisputedly the properties declared by Shri K. N. Singh in the name of the assessee remained the same. we are of the opinion that the Revenue should have taken a holistic view of the position and total investment in a property during the period under search should have been compared with the total surrender towards that particular property. The assessee in her reply to Assessing Officer, reproduced by us in earlier part of this order, had also confirmed that surrender was made by Shri K. N. Singh Patel on account of construction in various properties and there is no mention of yearwise construction. In the above assessments of Shri K. N. Singh, the Assessing Officer has not made any addition and has accepted the returns filed by him u/s 153A of the Act which means that he has accepted the declaration of surrender made by Shri K. N. Singh in the respective years of surrender. Therefore, keeping in view all the facts and circumstances, we set aside the order of learned CIT(A) on this account and remit the matter back to the office of the Assessing Officer to recalculate the addition, if any, after taking into account the total amount of surrender in various years with respect to the total investments in various properties, irrespective of the year of investment. Assessing Officer should compare the total investment during search period as valued by registered valuer towards various properties. For the purpose of comparison, the construction done before and after the search period has to be ignored. If the difference between such valuation of property in the search period exceeds the surrender amount for that property, the difference has to be assessed as income of the assessee. In view of the above, ground No. 4 in all the appeals relating to assessment year 2003-04 to 2008-09 is allowed for statistical purposes. Addition on account of acquisition of various properties - assessee claim that this addition was to be adjusted against the surrender of Shri K. N. Singh - HELD THAT :- We find that the addition made by the Assessing Officer on account of acquisition of various properties as mentioned by him in his order at page No. 20 and the undisclosed investment, sustained by learned CIT(A), cannot be set off by the surrender of Shri K. N. Singh as the surrender was made for construction only. The learned CIT(A) has already allowed appropriate relief therefore, we do not intend to interfere in his findings. - Ground of assessee is dismissed. Addition of house hold expenses - assessee claim that this amount was to be adjusted against the surrender of Shri K. N. Singh - HELD THAT :- We further find that Assessing Officer had made a total addition on account of various house hold goods available in the house at the time of search for which no evidence was filed and the total of such assets was was distributed among four members of the family and the share of assessee, was added. We find that learned CIT(A) has rightly upheld the addition by rejecting the contention of the assessee that this amount was to be adjusted against the surrender of Shri K. N. Singh. - Ground of assessee is dismissed.
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