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TMI Blog2013 (7) TMI 771X X X X Extracts X X X X X X X X Extracts X X X X ..... , dated January 11, 2008, which was rendered more or less on similar facts ? Is not the decision of the Appellate Tribunal in disagreeing to follow the precedents illegal and unsustainable ? (iv) Is the order of the Appellate Tribunal in relation to the additions made in the assessment legal, valid and sustainable in law ?" A search was conducted in the residential premises of the assessee on June 14, 2007, which revealed deposits in three bank accounts with Allahabad Bank, Bandra Branch, Mumbai. A total of Rs. 8 lakhs was deposited in cash on November 16, 2004. Two deposits, i.e., Rs. 3 lakhs and Rs. 2 lakhs aggregating to Rs. 5 lakhs were deposited in the joint names of the assessee and his wife. The third bearing a sum of Rs. 3 lakhs was deposited in the name of the appellant's daughter, Pramila Gopi, and her husband. The appellant was examined on oath under section 131 of the Income-tax Act. The appellant gave the following reply : "Question No. 2 : On examination of the materials seized during the time of search, the following payment slips were found out from your house. (1) Bank account No. 100054-Turner Road Branch of Allahabad Bank-Rs. 3 lakhs cash dated D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovember 2004. From this amount, I paid Rs. 8 lakhs, to my eldest daughter through cheque. Another Rs. 6 lakhs (six lakhs) was deposited in Senior Citizens Savings Scheme in SBI, Taliparamba. Another Rs. 4 lakhs was utilized for purchasing Nabard Capital Gains Scheme. Another 2 lakhs rupees was utilized to repair my house at Thaliparamba. I have not paid any capital gains on the above amount. I have acquired the tenancy right in 1969 by giving 3 months advance rent of Rs. 390. No brokerage was paid during the transfer of tenancy right." The assessee has not paid any capital gains tax on the transaction. In the return filed by the appellant, he claimed the entire capital gains as exempt under section 54EC as he had invested the long-term capital gains in Nabard Capital Gains Bonds on May 8, 2005 (within six months from the date of transfer). The Assessing Officer noticed that the appellant had reduced from the sale consideration an indexed cost of Rs. 16,80,000 on a market value of Rs. 3,50,000 as on April 1, 1981. The Assessing Officer noticed that the cost of tenancy right being self-generated, it has to be taken at nil as per the provisions of section 55 of the Act. The ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant. From the submissions of the appellant itself it is apparent that the appellant paid to the owner only a refundable deposit of Rs. 335 and took the house on rent at Rs. 112 per month. The letter of Smt. Sunitha Yewle, daughter of the owner of the house, is of no relevance in the matter because she does not confirm the receipt of amount. She was also not the recipient of the amount. Further to the above, the letter being a new evidence, was also not admissible at this stage as per rule 46A of the Income-tax Rules. In view of the above and the provisions of law as referred to above, I hold that the Assessing Officer was justified in making the addition. The additions of Rs. 16 lakhs made by the Assessing Officer as capital gains is accordingly confirmed. This ground of appeal is, therefore, rejected." The Tribunal has confirmed the findings. We heard learned senior counsel, Sri T. M. Sreedharan, and learned standing counsel for the Department. Learned counsel for the appellant would contend that as far as the tax effect for an amount of Rs. 5 lakhs on the basis of the statement given by the appellant at the time of search was concerned, the Tribunal should have note ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the statement given by the appellant at the time of search. The attempt which was made by the appellant, which he continues to do before this court is to make out that his daughter was employed and, therefore, the amount should be treated as her income. We must notice that the appellant, at the time of search had given a statement and he has no case that he had retracted from the statement on the basis that the statement was procured by means of any unlawful means. He had freely given the statement. The authority has acted on the same. Circumstances also appear to indicate that the findings of the Tribunal affirming the orders of the authorities are probable in this regard. He has given a statement that he has received the amount which are found in the slips. It shows that the amounts have been deposited in three bank deposits which he received from the previous employers, all in cash which were not subjected to any tax at all. In such circumstances, we do not think that appellant has been successful in persuading us to hold that there is any substantial question of law made out. As far as the question relating to payment of Rs. 20,000 as pugree and consequently the need for c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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