TMI Blog2015 (8) TMI 131X X X X Extracts X X X X X X X X Extracts X X X X ..... aintainable and we reject the same. Addition on account of peak cash credit entries found in the diary during the course of search - CIT(A) deleted the addition - Held that:- CIT(A) has noted totaling error in Annexure A-4 to the extent of ₹ 1.35 lakhs and while making addition onaccount of aggregate credits, relief of ₹ 1.35 lakhs was given to theassessee. Since it was a totaling error, there is no infirmity in the order ofthe ld. CIT(A). Accordingly we confirm the same.- Decided in favour of assessee. Undisclosed investment in elevation of showroom at Birhana Road, Kanpur - CIT(A) deleted the addition - Held that:- The issue was examined by the ld. CIT(A) and he has taken note that the assessee has already declared investment of ₹ 2,82,989/- towards renovation of shop at Birhana Road, Kanpur as against ₹ 3.42 lakhsestimated by the valuation cell. The ld. CIT(A) has noted that thedifference between the investment as declared by the assessee andestimated by the valuation cell is on account of variation in PWD and CPWDrates. The valuation between the two is around 10 to 15% and if thebenefit is given to the assessee the cost estimated by the valuation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessing officerthat the assessee had admitted this excess stock as unaccounted andhe was ready to pay tax thereon. 3. The learned Commissioner of Income Tax (Appeals)-II, Kanpurhas erred in law and on facts of the case in deleting the addition ofRs.51,620/- made by the assessing officer on account of unaccountedof gold stock found during the course of search proceeding withoutappreciating the fact brought on the record by the assessing officerthat the assessee had surrendered the same in his return of incomefor the block period. 4. The learned Commissioner of Income Tax (Appeals)-II, Kanpurhas erred in law and on facts of the case in deleting the addition ofRs.1,35,000/- made by the assessing officer on account of peak cashcredit entries found in the diary during the course of search ,whichwas unaccounted, without appreciating the facts brought on therecord by the assessing officer that the assessee has alreadyadmitted for the same as unrecorded in his regular books ofaccounts. 5. The learned Commissioner of Income Tax (Appeals)-II, Kanpurhas erred in law and on facts of the case in deleting the addition ofRs.59,011/- made by the assessing officer on account of un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n which certain debit and credit entries were noticed bythe Assessing Officer. This seized document was marked as Annexure A-4and the Assessing Officer has made an addition of ₹ 25,52,214/- onaccount of peak entries of loan as per Annexure A-4 seized from thepremises of the assessee. 3. Before the ld. CIT(A), the assessee has analyzed each and everyentry as appearing in Annexure A-4 by way of ledgerizing the same which isreproduced hereunder:- Annexure - 4 Rakesh Kamlesh Date Particular's Amount (dr.) Amount (cr.) Balance 02.05.98 Payment 7000.00 7000.00 0.00 11.05.98 Payment 23890.00 13890.00 Received 17000.00 0.00 13.05.98 Received 13890.00 0.00 15.05.98 Payment 33530.00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 Payment 26336.00 21843.00 Received 14500.00 10013.00 15.06.98 Received 11830.00 0.00 16.06.98 Received 10013.00 0.00 17.06.98 Payment 26291.00 16291.00 Received 10000.00 10000.00 18.06.98 Received 6291.00 0.00 22.06.98 Received 10000.00 0.00 29.06.98 Payment 29944.00 19944.00 03.07.98 Received 10000.00 0.00 04.07.98 Received ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ofRs.1.35 lakhs on account of totaling error. 5. But so far as the aggregate credit of ₹ 24,16,214/- is concerned, nosatisfactory explanation/confirmation was furnished and accordinglyunexplained income in the shape of deposits in Annexure A-4 to the extentof ₹ 24,16,214/- was confirmed by the ld. CIT(A). However, as perAnnexure A-4 on its ledgerization of balance sheet and Annexure B, it wasnoticed by the ld. CIT(A) that on the asset side a sum of ₹ 23,99,214/- isappearing in the name of Jewel Palace in the proprietorship concern of theassessee while a sum of ₹ 22,253/- is appearing in the name of RakeshKamlesh and ₹ 33,481/- in the name of Rajesh Dulare. The ld. CIT(A) hasalso taken note that no cash was found at the time of search in thepremises of Jewel Palace whereas as per Annexure A-4 a sum ofRs.23,99,214/- should have been available at the time of search. The ld.CIT(A) has also taken note that the assessee was in possession of articlesof pawning, therefore, an amount of ₹ 23,99,214/- should either be incash or jewellery or gold ornaments. However, during the course of searchonly jewellery consisting of gold ornaments, silver utensils, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was given to theassessee. Since it was a totaling error, there is no infirmity in the order ofthe ld. CIT(A). Accordingly we confirm the same. 10. Apropos ground No.5, it is noticed that the Assessing Officer hasmade addition of ₹ 59,011/- on account of undisclosed investment inelevation of showroom at Birhana Road, Kanpur. The issue was examinedby the ld. CIT(A) in his order at page 18 and he has taken note that theassessee has already declared investment of ₹ 2,82,989/- towardsrenovation of shop at Birhana Road, Kanpur as against ₹ 3.42 lakhsestimated by the valuation cell. The ld. CIT(A) has noted that thedifference between the investment as declared by the assessee andestimated by the valuation cell is on account of variation in PWD and CPWDrates. The valuation between the two is around 10 to 15% and if thebenefit is given to the assessee the cost estimated by the valuation celltowards renovation of showroom would stand reduced by 15% and in sucha circumstances it would come to ₹ 2,90,700/- as against ₹ 2,82,989/- bythe assessee. Therefore, no addition is called for. The ld. CIT(A)accordingly deleted the addition in this regard. 11. During th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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