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2023 (1) TMI 25 - AT - Income TaxUnexplained investment in purchase of property being Godown - addition of entire payment upto the date of sale deed - HELD THAT:- The assessee has produced the return of income of the preceding years as well as other record including the profit and loss account. Though the return of income were filed under section 44AD however, the availability of the cash was explained by the assessee in a chart showing the savings from the profits of the preceding years as well as the loan obtained by the assessee. These details were not considered and discussed either by the AO or by the CIT(A) in the impugned orders. Therefore, in the facts and circumstances of the case, when the AO has made the addition without even considering the fact that the payment of Rs. 1,00,000/- out of Rs. 8,00,000/- as considered by the AO was made in the preceding year and not during the year under consideration and further the explanation of the source of the payment was not discussed by the AO as well as the CIT(A), the impugned order of the CIT(A) is set aside and the matter is remanded to the record of the AO for fresh adjudication after proper verification and examination of the relevant facts as well as record explaining the source of investment made by the assessee. Accordingly, the appeal is allowed for statistical purpose. Reopening of assessment for unexplained investment in purchase of Godown - for AY 2011-12 - There is no allegation in the enquiry report regarding the another transaction of sale of plot for Rs. 3,75,000/- by Late Sh. Charanjit Singh Sehgal to the assessee. Further, the AO in the assessment order has not given any detail of property or title document through which the assessee has allegedly purchased the property. The AO took the second transaction of Late Sh. Charanjit Singh Sehgal as the transaction between the assessee and the vendor without considering the fact that the second transaction reported in the enquiry report does not pertain to the assessee. Accordingly, in the absence of any fact or document to show that the assessee has purchased the said plot of land from Late Sh. Charanjit Singh Sehgal, vide sale deed dated 11.3.2011, the addition made by the AO is baseless and liable to be deleted. Accordingly, the appeal of the assessee is allowed.
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