2023 (3) TMI 1309 - AT - Income Tax

Under reported sale price of flats - A survey u/s 133A was carried out wherein statement of partner was recorded and several loose papers were impounded - HELD THAT - The document found during the survey was unsigned and was not registered. The price which was mentioned by the assessee was not only confirmed by the purchaser but also through the various document such as bank entries the cash entries received during the course of purchase of the sale of flats. Thus, the assessee has proved that there was no installment of sale price but the actual price received and therefore, the addition made by the Assessing Officer is not justifiable. Thus, Ground No. 2.1(i) is allowed. Addition towards cash found during survey - Whether Cash belong to deceased father? - HELD THAT - The cash found during survey was properly explained by the assessee during the course of survey as well as at the time of assessment proceedings through cash books where the said amount was included. The books was not rejected by the Assessing Officer and hence, the addition made by the Assessing Officer does not sustain. Hence, Ground No. 2.1(ii) is allowed.

Summary

Issues involved:
The appeal challenges the order passed by the Ld. CIT(Appeals)-11, Ahmedabad for A.Y. 2017-18, involving additions related to underreported sale price of flats, unexplained cash found during survey, and meter boxes installation expenses.

Underreported sale price of flats:
The Assessing Officer made an addition of Rs. 20 lakh as unaccounted income due to the declared sales consideration being less than the sale agreement price. The Ld. A.R. argued that the price discrepancy was justified, supported by confirmation from the purchaser and lack of cancellation agreement. The Tribunal found the unsigned document found during the survey lacked evidentiary value, and the actual sale price of Rs. 55,11,111/- was proven by various documents. Consequently, the addition was deemed unjustifiable and allowed.

Unexplained cash found during survey:
The Ld. A.R. contended that the cash, belonging to the deceased father of the partner, was properly explained and should not be considered unaccounted for. The Tribunal, after reviewing the explanations provided and the inclusion of the cash amount in the books, concluded that the addition made by the Assessing Officer was not sustainable. Therefore, this ground was allowed.

Meter boxes installation expenses:
The addition towards meter boxes installation expenses, which was allowed by the CIT(A), was not further contested and hence did not survive for adjudication.

General grounds and other issues:
Grounds related to the legality of the CIT(A)'s order and the nature of declared income were dismissed as general in nature. Other grounds not requiring adjudication were also mentioned. The relief granted by the CIT(A) in respect of certain additions rendered further discussion unnecessary.

Conclusion:
The appeal was partly allowed by the Tribunal, with specific additions being disallowed based on the arguments and evidence presented by the assessee. The decision was pronounced in open court on 17/03/2023.