2005 (6) TMI 216 - AT - Income Tax

Issues Involved:
1. Addition of Rs. 3,65,200 for unexplained cash.
2. Addition of Rs. 4,00,960 for diamond jewelry.
3. Lack of specific direction for relief of Rs. 15,88,668.
4. Disallowance of depreciation for office premises.
5. Addition of Rs. 7,05,193 for creditor written back.
6. Addition of Rs. 1,18,237 for credits in SBI account.
7. Addition of Rs. 10,28,404 for credits in Maharashtra State Co-operative Bank.
8. Alleged utilization of Rs. 5,00,000 and Rs. 2,00,000 for property and interior decoration.
9. Addition of Rs. 50,00,000 for unexplained investment in La-mer flat.
10. Addition of Rs. 7,25,000 for cash payment to carpenter.
11. Addition of Rs. 25,79,000 for prize money and remuneration from Miss World (Jersey) Ltd.
12. Addition of Rs. 3,214 for credits to capital account.
13. Addition of Rs. 13,11,210 for bonus, interest, and other receipts.
14. Enhancement of Rs. 9,85,461 for excess credit in Royal Bank of Scotland.

Summary:

1. Addition of Rs. 3,65,200 for unexplained cash:
The Tribunal found that the cash found during the search was explained by the assessee through cash books and withdrawals from Maharashtra State Co-op. Bank Ltd. The Tribunal accepted the explanation and deleted the addition of Rs. 3,65,200.

2. Addition of Rs. 4,00,960 for diamond jewelry:
The Tribunal held that the acquisition of the jewelry items was explained through purchase invoices and past assessments. The appreciation in value due to the passage of time cannot be a subject matter of addition. The addition of Rs. 4,00,960 was deleted.

3. Lack of specific direction for relief of Rs. 15,88,668:
The Tribunal did not find any specific issue or direction related to this amount in the judgment.

4. Disallowance of depreciation for office premises:
The Tribunal found that the premises were used for professional purposes and the claim for depreciation was justified. The addition of Rs. 24,17,297 was deleted.

5. Addition of Rs. 7,05,193 for creditor written back:
The Tribunal held that the addition was not based on any seized material and the amount was already offered for tax in the regular return. The addition was deleted.

6. Addition of Rs. 1,18,237 for credits in SBI account:
The Tribunal found that the addition was not based on any seized material and the existence of the bank account was disclosed to the department. The addition was deleted.

7. Addition of Rs. 10,28,404 for credits in Maharashtra State Co-operative Bank:
The Tribunal held that the correct amount of undisclosed income should be Rs. 17,28,404 as declared by the assessee and not Rs. 10,28,404. The addition was modified accordingly.

8. Alleged utilization of Rs. 5,00,000 and Rs. 2,00,000 for property and interior decoration:
The Tribunal accepted the explanation that the amounts were utilized from the withdrawals from Maharashtra State Co-op. Bank Ltd. and deleted the addition of Rs. 7,25,000.

9. Addition of Rs. 50,00,000 for unexplained investment in La-mer flat:
The Tribunal found that the statement of the assessee's father was corrected during post-search inquiries and no cash payment was made. The addition was deleted.

10. Addition of Rs. 7,25,000 for cash payment to carpenter:
The Tribunal accepted the explanation that the payment was made from the cash withdrawals from Maharashtra State Co-op. Bank Ltd. and deleted the addition.

11. Addition of Rs. 25,79,000 for prize money and remuneration from Miss World (Jersey) Ltd.:
The Tribunal held that the amount was already disclosed in the regular assessments and no material was found in the search to warrant the addition. The addition was deleted.

12. Addition of Rs. 3,214 for credits to capital account:
The Tribunal found that the addition was not based on any seized material and the amount was already disclosed in the regular return. The addition was deleted.

13. Addition of Rs. 13,11,210 for bonus, interest, and other receipts:
The Tribunal held that the amount was already disclosed in the regular assessments and no material was found in the search to warrant the addition. The addition was deleted.

**14. Enhancement of

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