TMI Blog2013 (7) TMI 520X X X X Extracts X X X X X X X X Extracts X X X X ..... on for rejecting the sources and application of the funds as enumerated in the fund flaw statement - the AT is justified in deleting the addition towards unexplained expenditure on foreign tour made by the AO - the AT is justified in deleting the addition of unaccounted interest made by the AO. - Decided against the revenue. Whether the AT is justified in deleting the addition by way of unexplained stock made by the AO - the statement of affairs submitted by the assesse - the assessee has shown stock - the investment in stock is fully taken care of as per the statement of affairs – thus on this issue also court do not find any reason to interfere in the order of the CIT (Appeals) - this ground is also rejected - Held that:- Both the auth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tour of Rs.75,000/-, made by the AO ? D. Whether in the circumstances and the facts of the case and in law, the Appellate Tribunal is justified in deleting the addition of unaccounted interest of Rs.7,40,355/- made by the AO ? 2. In the case of the very assessee, two questions i.e. question Nos.A and C, were proposed by the Revenue for the assessment year 2000-2001 in Tax Appeal No.45 of 2013 and they have been answered as follows : 2. The brief facts of the instant case are as follows : - 2.1 On a search proceeding under Section 132 of the Act carried out on October 27, 2005 and a notice under section 153(A) of the Act pursuant to such search, the assessee filed the return of income for assessment year 2000-2001 declaring total inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation on account of unaccounted sales prior to this. However, the habit of not recording full sales were prevalent since beginning, and as the search relevant years began from the AY 2000-01 and onwards the disclosure of unaccounted sales were made. Therefore, it would be improper to say that no cash was generated prior to AY 2000-01 on account of unaccounted sales. This is further corroborated from the fact that, the same AO had reopened the assessment of the company M/s.Balaji Wafers P Ltd. for AY 1999-00 and worked out unaccounted sales and profit earned thereon, by passing order u/s. 147 of the Act. The reason to believe escapement for reopening of assessment for AY 1999-00 was on account of some incriminating material found and seized ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in appeal by the Revenue before the Tribunal and it concurred with the findings of the CIT (Appeals). The Tribunal found no defect in both the agreements being family settlement agreement and property sale agreement. Therefore, it chose not to controvert any of the findings of the CIT (Appeals). 5. Learned counsel Mr.P.G. Desai appearing for the Revenue has vehemently urged that the Tribunal did not consider the fact that M/s.Balaji Wafers Pvt. Ltd. had declared additional income in the assessment year 1999- 2000 of Rs.20 lac, whereas the assessee received such an amount way back in the year 1995. Moreover, there was no partnership firm named as M/s.Balaji Wafers Pvt. Ltd. and thus, the Assessing Officer was right in rejecting both the do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... strar had levied additional stamp duty by verifying the property at Rs.28,50,928/-. The provision of Section 50C of the Act was applied by the Assessing Officer relying on earlier decisions of its own in the case of the assessees. The Tribunal concluded that the provisions of Section 50C was not applicable to the purchaser. The relevant findings of the Tribunal in ITA No.1749/Ahd/2008 were relied upon, which are as under:- "10. After careful consideration of the rival submissions, facts and circumstances of the case, provisions of the law as well as decisions(s) of Hon'ble Supreme Court and various Benches relied upon by parties, we are of the opinion that the CIT(A) was not justified in confirming the addition by drawing the analogical p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd had owned up the activities of the firm, stock of Rs.22,11,770/- had been found without any books of accounts nor were there any stock registers available. Therefore, such account had been treated as unexplained investment. According to the assesseerespondent, the source of investment was from the family settlement received by the respondent-assessee. When challenged before the CIT (Appeals), on the ground that the assessee had received family settlement, by virtue of his position as a vendor and being the eldest brother and as also since he had certain funds of some of his properties sold, it deleted the addition. It also noted that there was no reason for rejecting the sources and application of the funds as enumerated in the fund flaw ..... X X X X Extracts X X X X X X X X Extracts X X X X
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