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2023 (11) TMI 284 - ITAT PUNEAddition u/s 69 - unexplained investment made in purchase of plot - Survey action 133A at the premises of Mahalaxmi divulged that they sold plots to various persons [including assessee] accepting on-money - HELD THAT:- As borne out from the assessment order that some other plot purchasers, who had paid on-money to Mahalaxmi during such period as transpired from the impounded documents found during the course of survey, disclosed the payment of such on-money in Income Declaration Scheme, 2016 (IDS). This fact has been recorded on page 9 of the assessment order. There is no loose end in the entire transaction of the assessee having paid on-money, which was received by Mahalaxmi and also admitted for taxation. Authorities below were fully justified in making and confirming the addition u/s 69 on account of such on-money paid in cash to Mahalaxmi during the year under consideration. AR made a without prejudice submission to the effect that the addition, if at all, could have been made in the succeeding year when sale deed was registered. This contention is sans merit because section 69 provides that where the assessee has made investments in the financial year immediately preceding the assessment year and these are not recorded in the books of account and further no/unsatisfactory explanation is offered about the nature and source of investments, etc., the value of investments is deemed to be the income of the assessee of such financial year. In other words, section 69 is attracted in the year of making unrecorded investments and not when connecting transaction gets completed later on. The point of incidence of addition is making of the unrecorded investment. As the assessee and Shri Gitesh Manoharlal Wadhwa paid total on-money of Rs. 37 lakh in the year under consideration for purchase of plot No.14 which was neither recorded in the books of account for the year nor any satisfactory explanation was given, the addition is correctly called for in the year of payment, which is the year under consideration. To sum up, it is held that the authorities below were perfectly justified in making the addition u/s 69 towards on-money paid by the assessee in the year under consideration. Decided against assessee.
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