TMI Blog2010 (10) TMI 1064X X X X Extracts X X X X X X X X Extracts X X X X ..... lant s bank account and the expenses are accounted in the books of accounts. In view of this, I am of the considered opinion that the disallowance made by the AO is not justified and the same has to be deleted. The arguments put forth by the ld. AR and the Ld.DR, are quit contrary to the facts observed by the ld.CIT(A) in his order - In these circumstances, the matter may be remitted back to the file of the ld.AO for de novo consideration with respect to the loan issue of purchase of property in Peenya. In the event the assessee claims that he has not purchased the property, as revealed in the AIR, before the ld.AO, then, it would be proper for the ld.AO to obtain the Sale Deed from the Sub Registrar s office to prove the revenue s claim. Assessment order based only on the AIR report will not stand in the eye of law. The appeal of the revenue and the cross-objections of the assessee are allowed for statistical purposes. - ITA No.868/Bang/2009 & Cross Objection No.66/Bang/2009 - - - Dated:- 22-10-2010 - SHRI GEORGE GEORGE, K. JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER For the Petitioner : Smt. Jacinta Zimik Vashai, Addl.CIT(DR) For the Res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther these properties forms part of the assets disclosed in the balance sheet. Subsequently the ld. AR submitted before the ld. AO the schedule of fixed assets and established that the property purchased by the assessee in Madurai forms part of the balance sheet and an amount of ₹ 62,20,000 was included therein. According to the ld. AO, the assessee had no answer with regard to the property purchased at Peenya for a consideration of ₹ 70,00,000. Therefore relying on the AIR report, the ld. AO treated the property supposed to have been purchased by the assessee in Peenya as income from undisclosed investment and made an addition of ₹ 76,30,000/- based on the purchase consideration of ₹ 70,00,000/-, and assumption of, 8% towards stamp duty - ₹ 5,60,000/-, registration fee at 1 % - ₹ 70,000/-. 7. The assessee came in appeal before the ld. CIT(A). The CIT(A) after due deliberation and after obtaining a remand report of the ld. AO came to the following conclusion: From the above chart, it is seen that an amount of ₹ 76,30,000 being investment in the property situated at Khata No.337, Nagashetty Halli Village, Kasaba Hobli, Bangalore Nort ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n be relied upon by the Revenue, when the assessee has not co-operated by producing the relevant documents. Ld. DR contended that the AIR report had disclosed two properties purchased by the assessee. One of the purchases is established to be correct, and disclosed in the balance sheet of the assessee. Therefore, there was no reason for the AO to suspect that the information contained in the AIR pertaining to the other property purchased by the assessee to be incorrect. As a result, the AO was right in his realm to make the addition of ₹ 76,30,000/- towards undisclosed investment based on the AIR information. 10. We have heard the rival submissions and minutely perused the records produced before us including the paperbook pages 1 to 20 submitted by the ld. AR. On the close perusal of the Ld.CIT(A) s order it is observed that the appellant had explained that the Investment was not projected as an Asset in the Balance sheet but was shown as the expenditure forming part of cost of construction of the project since the appellant is a builder. The ld. CIT(A) had also examined the payments met out of Indian Bank current account and verified the schedule of cash and bank balance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yment 25,00,000.00 18.5.05 CA 587 Ch.No.643390 issued Shankaraiah towards a/c. towards purchase of land at Dollars Colony Payment 25,00,000.00 18.5.05 CA 587 Ch.No.643392 issued Shankaraiah towards a/c. towards purchase of land at Dollar colony Payment 20,00,000,00 Opening balance Current total 76,97,698.00 Current balance 76,97,698.00 From the above chart, it is seen that an amount of ₹ 76,30,000/- being investment in the property situated at Khata No.337, Nagashetty Halli Village, Kasaba Hobli, Bangalore North taluk was made through Indian Bank Account of the appellant which is properly reflected in the books of accounts maintained and audited as per the provisions of the Income-tax Act 1961. As the appellant i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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