9911796707
TMI Blog2013 (5) TMI 586X X X X Extracts X X X X X X X X Extracts X X X X ..... k. Thus delete the addition and this issue of assessee's appeal is allowed. Addition on account of undisclosed FDR from the bank mortgage - Held that:- Assessee stated the facts that original RIP certificate of Rs.40,000/- i.e. FDR was obtained by assessee on 14.11.1998 and this was renewed on 14.11.2005 at Rs.71,205/- and there is no FDR of Rs.83,000/- ever assessee had. It is clear that assessee's FDR is only of Rs.71,205/- and which was also made out of withdrawn amount of Rs.40,000/- made on 14.11.1998. As the facts are not available in the assessment order or in the order of CIT(A), this needs verification. The assessee can lead the evidence and AO will decide accordingly. This issue is set aside to the file of AO. This ground of ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct which is mandatorily required under the statute and such blatant violation of the law renders the order Passed ab initio void, ultra vires and ex-facie null in law." 3. At the outset, Ld. counsel for the assessee fairly conceded and stated that he is not pressing this issue under the instruction of the assessee. Since the Ld. counsel for the assessee is not pressing the issue, same is dismissed as withdrawn. 4. The next issue in this appeal of assessee is against the order of CIT(A) confirming the addition of Rs.10.5 lakh being unexplained investment on account of value of security provided to bank i.e. equitable mortgage on land and building, Mouza Selimabad, J.L No. 203, Kh. No. 246, Plot No. 229, Area of Land 0.07 acre, value 12,9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Land Building of Rs.12,90,000/- and the RIP of Rs.71,205/-. The A/R could not offer any satisfactory explanation. Thus, the total value of land building of Rs.12,90,000/- and RIP value of Rs.71,205/- = Rs.13,61,205/- minus Rs.2,35,000/- = Rs.11,26,205/- is included with the total income of the assessee, treating the same as his unexplained investment u/s. 69B of the I. T. Act, 1961. Penalty proceedings u/s. 271(1)(c) of the I. T. Act, 1961 is initiated separately." In this continuing issue, the assessee has also challenged the addition of Rs.83,000/- being FDR value which is taken here at RIP value at Rs.71,205/- and for this, assessee has raised following ground no.4: "FOR THAT the Ld. Commissioner of Income Tax (Appeals) Jalpaig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order or any other details showing the particulars of property mortgaged for the loan. According to him, as per the normal practice of bank even if any existing property is mortgaged to the bank for sanctioning excess amount over and above the Book value of the property, the assessee has to furnish a valuation report of the property from an approved valuer. The bank also gets the property valued through their authorized engineer. But in this case, the assessee could not produce any such document and no details were produced before the AO. Hence, he upheld the addition. In respect to addition of Rs.83,000/- on account of unexplained investment u/s. 69B of the Act, he noted that even if the same is out of withdrawal from capital and the inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ht to the AO to make addition of income, under any of the provisions of the Act, in the hands of the assessee, rather it is only for obtaining loan or cash credit limit from bank. In such circumstances, we delete the addition and this issue of assessee's appeal is allowed. As regards to the addition of Rs.83,000/- made by AO on account of undisclosed FDR as the Ld. counsel for the assessee stated the facts that original RIP certificate of Rs.40,000/- i.e. FDR was obtained by assessee on 14.11.1998 and this was renewed on 14.11.2005 at Rs.71,205/- and there is no FDR of Rs.83,000/- ever assessee had. From the bank mortgage it is also clear that assessee's FDR is only of Rs.71,205/- and which was also made out of withdrawn amount of Rs.40,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mputer on 08.10.2006 which is less than 180 days. The assessee is entitled to depreciation @ 30% of Rs.48,800/- which comes to Rs.14,640/-. Thus, the balance of depreciation of Rs.14,640/- is disallowed and added back to total income of the assessee. Penalty proceedings u/s.2 71(1)(c) of the I. T. Act, 1961 is initiated separately." 10. The CIT(A) confirmed the disallowance only on the basis that no evidence was filed before him. As the assessee has filed evidence before us but these need verification. Hence, we restore this issue to the file of AO for verification and decide the issue as per law. 11. In the result, appeal of assessee is partly allowed for statistical purposes. 12. Order pronounced in the open court. - - TaxTMI - T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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