9911796707
|
Home
Issues involved: Assessment of income u/s 143(3) for AY 2004-05, addition of agriculture income, valuation of house construction, addition of gifts under "Income from Other Sources".
Assessment of income u/s 143(3): The appellant, a partner in six firms, declared total income for AY 2004-05. Various additions were made by the Assessing Officer (A.O.) which were confirmed by the Commissioner of Income Tax (Appeals). The appellant raised grounds challenging the order. Addition of agriculture income: The appellant substantiated the receipt of agriculture income with proof, but the A.O. estimated a lower income and added the difference as income from other sources. The Tribunal found the A.O.'s estimation without valid basis and solely based on an expert opinion to be incorrect. The declared agriculture income supported by evidence was accepted, and the estimated addition was deleted. Valuation of house construction: The A.O. referred the matter for valuation without rejecting the books of accounts, leading to an addition. Citing legal precedent, the Tribunal held that without rejecting the books of accounts, such referral was not permissible. Consequently, the addition related to house construction was disallowed. Addition of gifts under "Income from Other Sources": The A.O. treated cash gifts received by the appellant as undisclosed income and added them under Section 68 of the Act. The Tribunal, after examining confirmations and explanations provided by the donors, found the gifts to be genuine and accepted them. The entire amount of gifts was allowed, and the addition made by the A.O. was disallowed. Conclusion: The Tribunal allowed the appeal filed by the assessee, overturning the additions made by the A.O. and confirming the validity of the declared income and gifts received.
|
