2013 (5) TMI 104

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..... crutiny and thereafter the assessment was framed u/s 143(3) vide order dated 16.12.2010 and the total income was determined at Rs.11,82,520/-. Aggrieved by the order of the A.O. assessee carried the matter before the CIT(A). CIT(A) vide his order dated 27th July, 2011 dismissed the appeal of the assessee. Aggrieved by the order of CIT(A) assessee is now in appeal before us. 3. The only effective ground raised by the assessee is with respect to addition of Rs.9 lacs as unexplained investment u/s 69. 4. On perusing the working of depreciation as per schedule of fixed assets in the balance sheet the A.O. noticed that assessee had made investment of Rs.9 lacs in land. The assessee was asked to furnish the documentary evidence of the purchase. .....

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..... t acceptable. In this respect, I agree with the contention of the Ld. counsel that the provisions of sec.69 can be invoked only when the investment is not accounted for in the books and source of investment is unexplained. The investment made during the year is duly accounted for in the books and reflected in the audited balance sheet. However, the appellant had not disclosed as to whom the cash payment was made and for what purpose. The details and documents of land purchased were not disclosed. The addition to fixed asset in land is bogus. The appellant had made the payments for the land which is not in existence. The assets cannot be accepted as purchased just because certain cash payments were made in the name of land without disclosing .....

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..... bmitted that assessee did not furnish the required information called for by the A.O., therefore, the A.O. had no other option but to make an addition. He thus supported the order of the A.O. In the alternate he submitted that the matter may be remanded back to the file of the A.O. for verification of the details. 7. We have heard the rival submissions and perused the material on record. It is an undisputed fact and as evident from the schedule of fixed assets placed by the assessee at page 16 of the paper book that the investment in land as on 31.3.2008 is to the extent of Rs.14,50,000/- which includes the addition of Rs.9 lacs made during the year. From the copy of the ledger account of land and building for the period from 1st April, 20 .....

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