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2015 (8) TMI 120 - ITAT DELHI

2015 (8) TMI 120 - ITAT DELHI - TMI - Unexplained expenses in respect of Motia Khan Property - CIT(A) deleted the addition - Held that:- It is clear that the Settlement Commission has not made any further addition in respect to the Property at Motia Khan, Karol Bagh. The Settlement Commission has however made an addition of ₹ 5 crores in the hands of both Pradeep Aggarwal Group and Dinesh Jain group on account of unexplained transactions (recorded on loose papers) in respect of the propert .....

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2 - Dated:- 11-6-2015 - H S Sidhu, JM And J S Reddy, AM,JJ. For the Appellant : Shri Sanjay Prasad, CIT (DR) For the Respondent : Shri Adesh Jain & Akshat Jain, CA S ORDER Per H. S. Sidhu, JM Revenue has filed this appeal against the Order dated 10.6.2015 passed by the Ld. Commissioner of Income Tax (Appeals), III, Delhi pertaining to assessment year 2007-08 on the following grounds:- "1. On the facts and in the circumstances of the case, the CIT(A) has erred in law and on facts in dele .....

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ny / all of the grounds of appeal before or during the course of the hearing of the appeal. 2. The brief facts of the case are that a search and seizure action u/s. 132 of the I.T. Act was carried out in the Gopal Zarda group of cases on 15.1.2009 and during the course of search at the residential premises of Sh. Ashok Kumar Aggarwal, Director Gopal Corporation Ltd. at B-6, Kalindi Colony, 3rd floor, Maharani Bagh, New Delhi certain documents belonging to the assessee were seized. On the basis o .....

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s. 153C. The return of income was filed on 13.9.2010 declaring total income at ₹ 15,280/- Delay in filing of return of income was more than two months. Earlier assessee had filed his original return of income declaring same income. Subsequently notice u/s. 143(2) of the Act dated 14.9.2010 was issued and served upon the assessee. Previously, notice u/s. 142(1) of the Act dated 28.7.2010 along with the questionnaire were issued and served upon the assessee. Thereafter, during the course of .....

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9C r.w.s. 37 of the Act and completed the assessment vide order dated 29.12.2010 passed u/s. 153C r.w.s. 143(3) of the I.T. Act, 1961. 3. Against the aforesaid assessment order of the Assessing Officer, Asseessee appealed before the Ld. First Appellate Authority, who vide impugned order 15.12.2011 has allowed the appeal of the assesee and deleted the addition in dispute. 4. Aggrieved by the aforesaid impugned order dated 15.12.2011, Revenue is in appeal before the Tribunal. 5. At the time of hea .....

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e income of the assessee on account of unexplained and unaccounted expenses in the Motia Khan property. During the course of search proceedings u/s. 153C, certain papers annexurized as Page No. 47 of Annexure A-1 was found. On this paper, details of expenses and payment of share premium is mentioned. The AO contended that since the Directors of the assessee company has accepted the payment and receipt of Premium mentioned in Annexure A-1 of the seized documents therefore the amount of expenses m .....

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ers of both the companies, therefore, these expenses were related to both these companies and thus made addition of ₹ 47,02,750/- (50% of total expenditure of ₹ 94,05,500/-) each in the hands of the assessee company and M/s Penguine Farms Pvt. Ltd. 8. We further find that the Ld. CIT(A) has observed that the crux of the submission of the assessee dated 13.12.2011 were around the preposition that the additions made in case of the assessee with regard to unexplained and undisclosed exp .....

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ion in Order dated 31.12.2010 passed u/s 245D(4) of the IT Act is of the view that there is no case for addition made by the AO on account of unexplained and unaccounted expenses with respect to property at Motia Khan, as made in the assessment order. While it is true that the assessment order has been passed on 29.12.10 and therefore the AO was not having the benefit of having the Settlement Commission Order and finding given therein but then now as the Order of the Settlement Commission has al .....

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ant portion of the order of the Ld. CIT(A) is reproduced as under:- "The issue of unexplained and unaccounted expenses on account of Property at Motia Khan, as discussed by the Assessing Officer in his Assessment Order was already considered on Page No. 27 to 31 in the Order of the Income Tax Settlement Commission u/s. 245D(4) of the Act dated 31st December, 2010. The relevant para 24 of the Order reiterating the judgment of Hon ble Settlement Commission is presented hereunder for your kind .....

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Jain or Smt. Lata Jain - it is immaterial since it would be revenue neutral. So we may allow taxing this amount in the hands of Smt. Lata Jain. Regarding the year of taxability, the seized documents do not indicate any date of receipt of the premium. However from the cash flow statement given by Smt. Lata Jain and Roshan Agarwal, it is noticed that one part of ₹ 55 crores was received from Shri Gopal Gupta on 08.11.2006. ₹ 2.5 crore was received on 16.4.2007. When questioned why the .....

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