9911796707
TMI Blog2006 (7) TMI 178X X X X Extracts X X X X X X X X Extracts X X X X ..... cumstances of the case, the learned Income-tax Appellate Tribunal has erred in law in not considering the issue regarding examining the creditors, who had advanced the money to the assessee for booking the property, whereas specific directions were given in the order passed under section 144A of the Income-tax Act, 1961. (ii) Without prejudice to the above, whether, on the facts and in the circumstances of the case, the learned Income-tax Appellate Tribunal has committed an error of jurisdiction in holding that the surrender before the Income-tax Department against the unexplained investment noticed. during search proceedings was correctly adjusted during the immediately following year." Brief facts of the case are that the search and s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the prospective buyers who had booked shops in the shopping complex. A total of Rs. 7,40,000 stated to have been received during the year in question. It was pleaded that the amount was received through Mr. Sukhmal Jain, a property dealer at Delhi, through whom the shops were booked. However, no details, etc., were furnished. The assessee even could not produce Mr. Sukhmal Jain to substantiate his plea. The affidavit got from Mr. Sukhmal Jain was rejected by the Assessing Officer because of inconsistency noticed therein. Accordingly, the investment was treated as unexplained and added to the income of the assessee. On appeal the case was remanded back by the Commissioner of Income-tax (Appeals) (for short "the CIT(A)") on the ground that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is required to be made in the financial year immediately preceding the assessment year when such investment had been made and the same had not been recorded in the regular books of account of the assessee. Admittedly if the source of investment made in the financial year 1990-91 relevant to the assessment year 1991-92 is not explained, the addition of the same amount can only be made in the assessment year 1991-92. The assessee cannot take the benefit of the fact that in subsequent year the assessee had made disclosure of income to cover such investment in the subsequent assessment year until or unless there is evidence that such payments have been made in the subsequent assessment year. No evidence, whatsoever, has been produced before us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 94,310 certain payments were outstanding, which were made in the subsequent year. No such submission has also been made in the written submissions filed before us. Admittedly, in the books of account, the assessee have accounted for cost of construction of Rs. 8.75 lakhs only. As regards the sale proceeds, which could be considered available for making the investments, would be only to the extent there were utilized for making such payments, which have already been taken into account by the learned Commissioner of Income-tax (Appeals). In the absence of any further evidence, no further credit could be given on this account and the order of the learned Commissioner of Income-tax (Appeals) is confirmed on this issue.' We may mention that a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ile accepting the contention of the assessee that the surrender made by the assessee in the subsequent year should be related back to the investment made in the previous year. The assessee was free to make surrender for the year in question as he was in the knowledge of the fact as to in which year unexplained investment had been made by him. When stuck up in the web woven by the assessee himself by withholding true and correct picture of his income, he tried to wriggle out by taking pleas here and there. Such contentions cannot be accepted seeing the conduct of the assessee, the material on record and findings recorded by the Tribunal with which we are in complete agreement. Accordingly, no substantial question of law arises in the appea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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