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2023 (8) TMI 1180 - ITAT CHENNAIAssessment u/s 153A - Undisclosed investment - HELD THAT:- It is admitted fact by the assessee that it has paid only sum of Rs. 5 Lacs to the sellers and therefore, the investment, to that extent, could be considered as undisclosed investment by the assessee. Accordingly, the impugned addition stand restricted to the extent of Rs. 5 Lacs. We order so. The corresponding grounds stand partly allowed. Addition of agricultural income - We find that the assessee has been searched on 21.02.2019. It is undisputed fact that on the date of search, no assessment proceedings were pending against the assessee for the year under consideration. Therefore, this is a year of unabated assessment. We also find that the impugned addition is not based on any incriminating material as found by the department during the curse of search proceedings. In such a case, no addition could have been made by revenue in terms of the recent decision of DCIT vs. U.K. Paints (Overseas) Ltd [2023 (5) TMI 373 - SC ORDER] In this decision, Hon’ble Court followed its earlier decision rendered in Pr. CIT vs. Abhisar Buildwell Pvt. Ltd. [2023 (4) TMI 1056 - SUPREME COURT] and held that where no incriminating material was found in case of any of assessee either from assessee or from third party, High Court rightly set aside assessment order passed under section 153C. In the present case, the facts are similar. There is nothing on record which would show that any incriminating material was found during search operation which would show that the agricultural income belonged to the assessee instead of HUF. Therefore, we would hold that the aforesaid agricultural income is not to be considered in the hands of the assessee. The corresponding grounds raised by the assessee stand allowed. The addition on account of gift to wife has already been deleted in the impugned order. Assessee appeal partly allowed.
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