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2022 (9) TMI 34 - ITAT CHANDIGARHAddition on account of certain loose slip found during the course of search - as contended that during the course of assessment proceedings, balance sheet duly disclosing the capital work-in-progress and amount payable towards such purchases was duly submitted - HELD THAT:- CIT(A) has not accepted the contention of the assessee holding that no bills have been submitted in respect of purchases besides the assessee has failed to explain the source of making the payment in the next financial year. In our view, where the liability towards such purchases has been shown under the head “capital work-in progress” which corresponds to document found during the course of search and which continues to remain outstanding (and payment not being made during the year) in the books of accounts at the year end, it is a case where the assessee has neither claimed the expenditure during the year under consideration nor any payment has been made during the year under consideration, the question of disallowance or making an addition towards the same doesn’t arise and is hereby directed to be deleted. In the result, the ground of appeal is allowed. Addition on account of non disclosure of work-in-progress in the Income Tax Return - HELD THAT:- Firstly, regarding receipts from professional activities and from agricultural income, CIT(A) has not accepted the same holding that no documentary evidence has been filed in support thereof which has now been contested by the assessee stating that the said receipts have been duly disclosed in the return of income and has been accepted by the AO. We agree with the contention of the assessee that where the nature and source of receipt has been duly accepted by the Revenue, there is no basis to deny the claim of the assessee as the source of investment in his real estate projects and the addition is hereby directed to be deleted. Receipts on account of unsecured loan from three persons - The claim of the assessee has been denied by the CIT(A) holding that these transactions are not reflected under the head “unsecured loans” in the balance sheet as on 31.03.2018. The claim of the assessee however has been that these unsecured loans were taken in personal capacity by the assessee and the amount has been received in his saving bank account and thereafter, these amounts have been transferred by way of capital contribution to the account of M/s M.P Builders & Developers and has been shown under the head “capital contribution” and form part of Rs 43.66 lacs capital contribution which is not under dispute. On perusal of the documents available on record, we believe that the assessee has sufficiently explained the source of investment in his real estate projects by way of loan taken in personal capacity which has been invested and show as capital contribution. In the result, the addition is directed to be deleted. In the result, the ground of appeal is allowed. Addition on account of alleged investment in jewellery - As contended that the value of jewellery found during the course of search is well within the limits as provided in CBDT Instruction no. 1916 dated 11.05.1994 as corroborated by the copy of panchnamas and department valuer report. The panchnamas and the department valuer report are part of the assessment records and the same can be verified to examine veracity of the contention so raised by the assessee. We accordingly set-aside the matter to the file of the AO to examine the said contention as per law after providing reasonable opportunity to the assessee. In the result, the ground of appeal is allowed for statistical purposes.
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