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2014 (5) TMI 443 - HC - Income TaxUnexplained investment Deletion made - The deletion of the addition of ₹ 1 crore on account of the unexplained investment, the CIT(A) and the Tribunal have deleted the addition on examination of facts - no question of law arises for our consideration - The facts do not point conclusively to unexplained investment of ₹ 1 crore in cash by the assessee particularly because the MoU as well as the receipt in question were unsigned documents and the transaction had not materialized - as the deletion of the addition of ₹ 57 lacs on account of the Udyog Vihar property is concerned, the difference is that there was not even an unsigned receipt nor any payment through cheque - even the agreement was an unsigned document - The Tribunal found that there was not even an iota of evidence to establish the revenue s contention that any unexplained investment in cash had been made by the assessee in respect of the Udyog Vihar property - the findings of the Tribunal are also pure findings of fact and no question of law arises for consideration Decided against Revenue.
Issues:
1. Addition of Rs 1 crore on account of unexplained investment in land at village Samalkha 2. Addition of Rs 57 lacs on account of unexplained investment in land at Udyog Vihar Analysis: 1. The appeal was against the ITAT order deleting the addition of Rs 1 crore for unexplained investment in land at Samalkha. The AO based the addition on a MoU found during survey operations. The appellant accepted giving a cheque of Rs 1 crore but stated the transaction did not materialize. The AO insisted on the addition citing undisclosed source for cash payment. However, the CIT(A) and ITAT found no conclusive evidence of unexplained investment as the MoU and receipt were unsigned and the transaction did not occur. The ITAT emphasized the onus was on the AO to prove the investment, which was not done. Thus, the addition was deleted as no law point arose. 2. Regarding the addition of Rs 57 lacs for Udyog Vihar property, the Tribunal found no evidence supporting the revenue's claim of unexplained cash investment. The agreement was unsigned, and no payment through cheque or receipt was presented. The Tribunal's factual findings were upheld as no legal issue was identified. Consequently, the appeal was dismissed as no legal questions were raised for consideration in both instances.
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