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2014 (11) TMI 375 - ITAT DELHIIssues not properly adjudicated by the CIT(A) - Levy of penalty u/s 271A - Admission of additional evidence – Unexplained investment in respect of improvement of these two properties u/s 69B – Income to be assessed as profit and gains of business or capital gains – Held that:- The entire matter needs re-examination at the end of the AO - So far as addition under Section 69B made by the CIT(A) and his observation with regard to the head of income and levy of penalty u/s 271A is concerned, all these aspects were not considered by the AO - The CIT(A) made these additions and observations without allowing any specific opportunity to the assessee which cannot be said to be justified - the issue with regard to the source of cost of improvement also needs examination - The issue whether the income from sale of property is to be assessed under the head capital gains or business income also needs examination because from the details submitted by the assessee - one property at GK-1 was purchased by the assessee on 2.4.2006 for ₹ 43,00,386/- and assessee claimed to have incurred the expenditure for improvement amounting to ₹ 1,22,98,550/-. The property is sold on 31.3.2008 - Another property was purchased on 10.1.2007 for ₹ 18,69,638/-, cost of improvement is claimed at ₹ 61,48,700/- and the property is sold on 30.1.2008 - it certainly requires examination whether the profit/loss from the sale of those two properties is assessable under the head capital gains or business income- the matter is to be remitted back to the AO for re-examination of whole issue and pass a speaking order – Decided in favour of revenue.
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