Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (4) TMI 684 - AT - Income TaxUndisclosed investment u/s 69B as per DVO’s report - CIT-A deleted the addition - HELD THAT:- As respectfully following the decision of this Tribunal in the case of another group concern M/s Signature Builders [2021 (1) TMI 945 - ITAT INDORE] wherein held as the assessee has maintained regular books of accounts which are not found to be incomplete or unreliable and also have not been rejected by the Ld. A.O and secondly Valuation was done of the incomplete project which has been valued not on the basis of local price but on the basis of Delhi rates which are universally accepted on higher side. Therefore since no defects were pointed out in the books of accounts regularly maintained by the assessee and are duly audited and no incriminating material was found in the search to show that unaccounted investment in the building project has been made, addition made purely on the basis of Departmental Valuation Report, we find no reason to interfere in the finding of Ld. CIT(A) who was rightly deleted the addition for the alleged undisclosed investment u/s 69B of the Act made by the Ld. A.O - Decided against revenue. Unexplained investment u/s 69 in Purchase of land at Sernari Kalan - Assessee offered ₹ 225 lakhs as voluntary disclosure towards investment in land in a general manner without any reference to any specific land - HELD THAT:- CIT(A) has given telescoping benefit to the assessee against the income surrendered during the course of search. Revenue failed to prove that the alleged surrender for ₹ 225 lakh was given with regard to a specific transaction. It was a general surrender not having any nexus with any specific transaction to land and therefore Ld. CIT(A) has rightly given the credit for income declared in such declaration. We therefore confirm the finding of Ld. CIT(A) deleting the addition for₹ 21,50,000/- treating it to be a part of surrender of ₹ 225 lakh made by the assessee during the course of search. Thus Ground No.3 of the revenue stands dismissed. Disallowance u/s 40A(3) - cash paid against purchase of land at Semri Kalan, Bhopal - HELD THAT:- The cash payment of ₹ 4,90,000/- was made at the time of registering purchase deed. The payment made is duly recorded in the books of accounts as well as in the purchase deed which was registered before the registering authority. It is not the case of the revenue that the assessee had attempted to evade any tax liability by making payment in cash. Genuineness of the transaction is not in doubt. Assessee being in the business of real estate has entered into such transaction for business and commercial expediency. We therefore are of the considered opinion that Ld. CIT(A) has rightly deleted the disallowance in light of settled judicial precedence and the decisions referred by him in his appellate order, which do not call for any interference. Accordingly Ground No.4 raised by the revenue is dismissed.
|