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2015 (11) TMI 1433 - ITAT AHMEDABAD

2015 (11) TMI 1433 - ITAT AHMEDABAD - TMI - Unaccounted form of land development expenses and excess cash in proceedings under section 143(3) - Held that:- Both the authorities below have strongly relied upon survey statement of assessee’s partner Shri Nitin Kopikar whilst making the impugned additions totaling to ₹ 26.23 lacs. There is no supportive material quoted either in the course of assessment or in lower appellate order. The latter order runs into 19th full fledged pages out of whi .....

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roduce the original retraction affidavit (supra) therein which led an adverse inference. The instant appeal does not raise any such issue. We feel in these peculiar circumstances that once the CIT(A) has not taken into account all of the assessee’s argument in affirming the Assessing Officer’s action making the impugned additions, the matter deserves another innings in lower appellant proceedings.The Ld. CIT(A) shall pass a detailed speaking order. - Decided in favour of assessee for statistical .....

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nd ₹ 6.23 lacs; respectively, in proceedings under section 143(3) of the Income Tax Act, 1961, in short the Act . 2. The assessee firm is in land development business. The department conducted a survey in its group case on 9.3.2005. Its partner Shri Nitin V. Kopikar got recorded his statement allegedly admitting additional incomes in the shape of unaccounted land development expenses of ₹ 20 lacs and excess cash found in the course of survey to the tune of ₹ 6.23 lacs. The asse .....

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y any evidentiary value. The assessee further submitted that all its land development transactions were as per market value and duly registered wherein there was no such expenditure incurred of ₹ 20 lacs. It explained that the excess cash found of ₹ 6.23 lacs was less than that of ₹ 6,44,838/- as per its relevant cash book. The Assessing Officer in assessment order dated 28.12.2007 did not agree. He observed that assessee s partner had admitted the abovestated land development .....

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retraction made after about a period of two years. This resulted in the impugned additions totaling to ₹ 26.23 lacs being made in assessment order. The CIT(A) has affirmed the Assessing Officer s findings as under:- 6.2 Regarding the issue of the undisclosed income of ₹ 26,23,0007-the partner of the assessee Mr. Nitin V. Kopikar has himself stated on oath during the course of survey in his statement recorded had declared unaccounted development expenses and excess cash aggregating to .....

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the time of survey. After considering these facts, it is established that the appellant had in fact expended ₹ 20.00 lakhs for land development outside the books on his own land and therefore, the AO was justified in making the addition of ₹ 20.00 lakhs on this account. Similarly, the addition on account of excess cash found amounting to ₹ 6,23,000/- is also justified as the partner of the appellant, himself as accepted the same on oath. Thus, the addition of ₹ 26,23,000 .....

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ance (2013) 40 taxmann.com 329 (Guj.) is quoted in support. The Revenue strongly supports the CIT(A) order under challenge affirming both the additions in question. It produces copy of the tribunal s order in ITA 3250/Ahd/2008 M/s. Naroli Developers vs. ITO decided on 30-12-2006 in assessee s group concern s case pertaining to the very survey and retraction of the same partner Shri Kopikar. The assessee seeks to distinguish facts of the instant appeal vis-à-vis those involved in case of M .....

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