TMI Blog2019 (5) TMI 1305X X X X Extracts X X X X X X X X Extracts X X X X ..... survey that there was certain investment in fixture and furniture during the relevant Assessment Years. Even in the DVO s report the subject matter of valuation was not the investment in fixture and furniture but was only restricted to the investment made in the construction of building. Thus, even the DVO s report does not support the case of the AO Once there is no material to support such addition then addition cannot be made on certain estimate or presumption and accordingly same is directed to be deleted. - Decided in favour of assessee. - I.T.A. No. 2176/DEL/2015 - - - Dated:- 12-4-2019 - SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI O. P. KANT, ACCOUNTANT MEMBER For The Appellant : Shri R.S. Singhvi Shri Satyajeet Goel, CA For The Respondent : Shri Praveen Kumar, Sr.D. R. ORDER PER AMIT SHUKLA, JM: The aforesaid appeal has been filed by the assessee against the impugned order dated 09.01.2015, passed by the Commissioner of Income Tax (Appeals)-XV, New Delhi for the quantum of assessment passed u/s.143(3) for the Assessment Year 2002-03. In the grounds of appeal, the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e aforesaid statement of Mr. Sethi, we modify the order of the Tribunal to the aforesaid extent and direct that the A0 shall consider afresh aspect of the purported investment made on showroom furnishing and equipment with alleged expenditure of ₹ 20 lacs incurred thereupon. Needless to mention, it would be open to the assessee to question the proposed addition and argue that there is no basis for making such an addition. [Emphasis in bold is ours] 3. In the set-aside proceedings, the ld. Assessing Officer has again referred to the surrender offered by the assessee during the course of survey. The relevant question in this regard reads as under: Q. No.8. The showroom at 1/5, Tilak Nagar has been furnished and equipped during the F.Y.2001-02 and has been put to use from 19-10-01 onwards. What is total investment for this purpose? A. The investments in furnishing and equipping the showroom is partly recorded in the books of accounts. However, the actual investment is more and is out of my income so far not recorded in the books of accounts required to be maintained by me far not reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g items:- Colour TV Refrigerator - ₹ 15,000/- Camera - ₹ 4,540/- Water Filter - ₹ 7,590/- Security System - ₹ 12,420/- Weighing Machine - ₹ 51,315/- Generator - ₹ 16,500/- However, assessee has not shown any addition in respect of furniture and fixture, air conditioners and other showcases which are essentially required in jeweler s shop. Thus, based on this reasoning, he held that amount of ₹ 20 lac towards investment in showroom furnishing/building is justified. 5. Before us, the learned counsel for the assessee submitted th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the outset was rejected by the Tribunal after detailed reasoning and it was held that no such addition can be made simply on the basis of statement without any material on record and also no inquiry was made by the Assessing Officer to justify such an addition. The Hon'ble High Court while remanding the issue back to the file of the Assessing Officer has categorically observed that counsel for the respondent-assessee has no objection if this issue is also referred to the Assessing Officer to be decided afresh and it would be open for the assessee to question the proposed addition and argue that there is no basis for making such an addition. Thus, when the assessee before the authorities below have stated that there is no basis for making such an addition, then again relying upon the same statement made during the course of survey cannot justify the addition. The ld. CIT (A) however has tried to modify the order of the Assessing Officer, firstly, by observing that there were certain differences in the valuation of the property constructed by the assessee and such a difference of ₹ 13.34 lac goes to show that assessee has made certain investment outside the books. Apart f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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