TMI Blog2022 (11) TMI 420X X X X Extracts X X X X X X X X Extracts X X X X ..... the quantity of jewellery fall within the permissible limits. Another fact to be noted is that the assessee has also discharged the onus of establishing the source of jewellery. Accordingly, the impugned additions have rightly been deleted by Ld. CIT(A). The ground raised by the revenue stand dismissed. - ITA No. 3085 / Chny / 2018 ITA No. 3086 / Chny / 2018 - - - Dated:- 2-11-2022 - HON BLE SHRI MAHAVIR SINGH , VICE PRESIDENT AND HON BLE SHRI MANOJ KUMAR AGGARWAL , AM Assessee by : Shri T. Vasudevan ( Advocate ) - Ld. AR Revenue by : Shri Darzakhum Songate ( CIT ) Ld. DR ORDER Manoj Kumar Aggarwal (Accountant Member) 1. The facts as well as issues in both the appeal of the department for Assessment Year ( AY ) 2016 - 17 are same. The impugned orders have been passed by learned Commissioner of Income Tax (Appeals)- 18, Chennai [ CIT ( A ) ] on 18.10.2018. The grounds raised by the revenue in ITA No. 3085 / Chny / 2018 read as under : - 1. The order of the learned Commissioner of Income Tax (Appeals) is erroneous on facts of the case and in law. 2. The learned CIT(A) erred in directing the AO to delete the addition undisclosed income amounti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by Ld. AO. The Ld. AR, on the other hands, relied on the adjudication of Ld. CIT(A) in the impugned order. Having heard rival submissions, our adjudication would be as under. Assessment Proceedings 3.1 The assessee being resident individual is stated to be an Oncologist by profession. The assessee and his brother (Dr. Murugu Sundaram) were subjected to search action u/s 132 on 06.07.2015 wherein a statement u/s 132(4) was recorded from the assessee and his brother. The assessee admitted to have earned unaccounted income from freelancing surgeries in earlier years and admitted to have made investment out of such income as his share in a mall being constructed by M/s BSR Builders. The assessee agreed to offer the onmoney as undisclosed income and pay due taxes on the same. 3.2 One of the seized documents includes an agreement entered into by the assessee jointly with his brother (Dr. Murugu Sundaram) with M/s BSR Builders. The said agreement contained clauses for payment of on-money of Rs.11.2 Crores for purchase of 25% share in the proposed mall in OMR, Thoraipakkam. This was apart from payment in Cheuqe to builders. Accordingly, notice u/s 153A was issued and an ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sh that the source of payments towards this sum of Rs.2,42,29,375/- has not been disclosed in the financials or in the books of accounts of the assessee. The AO had failed to undertake this essential process of investigation to ascertain the fact and has made a huge addition without proper verification of facts and without deliberating the evidences produced by the applicant and countering the same. 7.4 On the contrary, the appellant was able to prove that this payment to M/s BSR Builders over and above the cash payment has been undertaken through banking channels. The extract of the balance sheet and the entries in the financials clearly prove that the payments spread over a period from 1.4.2012 to 31.3.2016 being a sum of Rs.2,50,75,050/- which includes registration charges of Rs,18,38,200/- paid to M/s BSR Builders have been accounted for the purpose of income tax. The AO failed to examine the balance sheet filed along with the returns of income and satisfy himself about the nature and characteristic of the payment. The AO has rather made an addition without any basis and therefore the same is directed to be deleted. Accordingly, this ground of appeal is allowed. Aggr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No.6 During the course of search proceedings conducted at the First Floor, No.49/20, Perianna Maistry Street, Periamedu, Chennai 600 003 some loose sheets were found and seized vide ANN/KVK/SPS/LS/S-1 (pages 1-22) in which BSR Builder Engineers and Contractors received a sum of Rs.11.20 Crores from you and your brother Mr. Murugu Sundaram from July 2012 to May 2015. Please explain for what purpose it has to be given? Ans. I along with my brother Dr. S. Murugusundaram purchased a property with equal share from BSR Builders, Engineers and Contractors admeasuring UDS share about 9191 Sq. Ft. at Okkiam, Thoraipakkam, OMR Road, Chennai for a sum of Rs.4,59,55,000/- by way of cheque. Apart from the cheque payment, we paid a cash portion of Rs.11.20 Crores to BSR Builders on various dates, for which the receipts were given by BSR Builders. From the statement, it is quite clear that the assessee and his brother agreed to purchase the property for a sum of Rs.459.55 Lacs by way of cheque. Apart from Cheque payment, cash payment of Rs.11.20 Crores was paid. The payment made by Dr. Murugu Sundaram has been clarified by him in reply to question no.5 in subsequent statement recorde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore, in the background of above facts, the impugned order could not be faulted with. The impugned additions have rightly been deleted by Ld. CIT(A) in the impugned order. The appeal stands dismissed. Appeal of Dr. Murugu Sundaram, ITA No.3086/Chny/2018 9. This assessee has been assessed in similar manner on 31.12.2017. The Ld. AO made further addition of Rs.242.29 Lacs on similar lines which was deleted by Ld. CIT(A). Aggrieved, the revenue is in further appeal before us. Facts being pari-materia the same as in ITA No.3085/Chny/2018, our adjudication therein would mutatis mutandis apply to this appeal also. The ground urged by the revenue stand dismissed. 10. The other ground in the appeal is deletion of addition of Rs.7.67 Lacs which represent unexplained investment in Jewellery. As per valuation report, gold jewellery of 815.10 grams and 19.41 carats of diamonds worth Rs.29.24 Lacs was found. Most of the jewellery was stated to be gifted by assessee s father on the occasion of marriage in the year 2000 as streedhan and the balance was stated to be received in gift on occasion of family functions. In support, the assessee filed affidavit of father-in-law and reli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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