Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (1) TMI 1116 - AT - Income TaxUnexplained investments - certain documents were seized from the residence of assessee as per panchnama under Exhibit B1 and agreement to purchase (isar chitthi) stated to have been drawn between the assessee and another person - HELD THAT:- As during the course of assessment proceedings, there was a letter of confirmation issued by the Abdul Razzaq Haji Daud about the cancellation of agreement to purchase (issar chitthi) as well as non-receipt of Rs.1 lakh. It is to be noted that the contention of the assessee is that no amount was paid and the said agreement to purchase (issar chitthi) was only agreed to purchase said property in future. This aspect was not at all considered by the AO and the CIT(A) but both the authorities below went out to disbelieve the version of the assessee as an afterthought. Admittedly, the AO added an amount of Rs.1,60,000/- to the total income of the assessee on account of undisclosed investment which is evident from computation vide para 7 of the AO’s order. CIT(A) also without verifying whether there is any investment as brought on by the AO in terms of alleged cash payments reflected in agreement to purchase (issar chitthi). Before us nothing was brought on record to show that the alleged cash payments towards purchase of property were resulted into any investment. Therefore, in the absence of any corresponding asset stated to have been materialized in terms of agreement to purchase (issar chitthi), the addition as confirmed by the CIT(A) is not justified. Thus, the order of CIT(A) is set aside and the grounds raised by the assessee are allowed.
|