9911796707
TMI Blog2012 (9) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... ncy of purchase and sale belies the stand of the assessee - against assessee. Addition on unexplained investment - Held that:- As the assessee has not been able to explain source of investment the CIT(A) has rightly upheld the addition as unexplained investment after deducting the amount already included in the income returned by the assessee - against assessee. Disallowance of expenses towards improvement and development of the plots - Held that:- Except for the bald statement of the assessee, there is nothing on record to show that any expenditure was incurred by the assessee for the development of plots. Even assessee was not able to show any document to substantiate the claim - against assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... 998/-. The Assessing Officer vide assessment order dated 17.12.2009 made the assessment under section 153A read with section 143(3) of the Act assessing total taxable income of the assessee at Rs. 78,73,023/-. 4. Aggrieved against the assessment order dated 17.12.2009, the assessee filed appeals before the CIT(A) on the following grounds:- i) Addition made by Assessing Officer on account of unexplained investment in plots Rs. 38,11,049/-; ii) Addition of business income of Rs. 2,66,976/-; & iii) Addition on account of unaccounted income (cash deposit in bank) Rs. 2,50,000/-. The CIT(A) after hearing the assessee and perusing the documents on record, deleted addition made twice on account of unaccounted investment to the tune of Rs. 34. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome as against capital gains claimed by the assessee. 8. Shri K.Meenakshisundharam, counsel appearing on behalf of the assessee submitted that the provisions of section 153A are not applicable in the case of the assessee as assessee had filed all the returns before the search was conducted. He further submitted that the authorities below have erred in holding that the transactions are business transactions and have treated the income as business income, whereas, the plots were purchased by the assessee as investment and the income of the assessee from sale of plots should have been assessed as capital gains. He further submitted that while considering the sale of land, the authorities below have erred in not taking into consideration the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase and sale of plots. On the contrary, the sequence of events show that the assessee had purchased plots to earn profit in the course of business. The frequency of purchase and sale belies the stand of the assessee. Thus, the Assessing Officer has rightly held that the income from sale of plots as business income instead of capital gains. 11. As regards unexplained investment of Rs. 4,11,049/- is concerned, the assessee has not been able to explain source of investment. Thus, the CIT(A) has rightly upheld the addition of Rs.4,11,049/- as unexplained investment after deducting the amount already included in the income returned by the assessee. 12. With respect to disallowance of expenses towards improvement and development of the plots is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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