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TMI Blog2022 (11) TMI 329X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the assessee, she had received gift from her husband is only an afterthought that too more than two years from the date of search without any documentary evidences. Hence, we are of the considered view that the AO has rightly rejected the arguments of the assessee and accepted income declared including undisclosed income offered towards source for purchase of property. CIT(A) rightly apprised the facts and sustained the additions made by the AO and thus, we are inclined to uphold the findings of the Ld. CIT(A) and dismiss appeal of the assessee. - ITA No. 3417/Chny/2019 - - - Dated:- 19-10-2022 - SHRI V. DURGA RAO , HON BLE JUDICIAL MEMBER AND SHRI G. MANJUNATHA , HON BLE ACCOUNTANT MEMBER Appellant by : Ms.T. V. Muthu Abirami , Adv Respondent by : Mr. M. Rajan , CIT ORDER Per G. Manjunatha , AM This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-19, Chennai, dated 27.09.2019 and pertains to assessment year 2015-16. 2. The assessee has raised the following grounds of appeal: 1. For that the order of the Commissioner of Income Tax (Appeals) is without jurisdiction, contrary to law, fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s. 153A of the Act. The Ld. Counsel for the assessee contended that legal ground taken by the assessee is purely a question of law which goes to root of the matter and thus, the same can be taken at any time of the proceedings including proceedings before the Tribunal and thus, petition filed by the assessee may be admitted. 3.1. The Ld. DR, on the other hand, opposing the petition filed by the assessee for admission of additional grounds submitted that the assessee is not a searched person and the assessment has been framed based on information collected during the course of search in other case and thus, the AO has rightly proceeded with completion of assessment u/s. 153C of the Act, and thus, there is no merit in legal ground taken by the assessee challenging validity of assessment proceedings. 3.2. Having heard both the sides and considered petition filed by the assessee for admission of additional grounds, we find that there is no merit in legal ground taken by the assessee challenging validity of assessment proceedings in light of non-issuance of notice u/s. 153A of the Act, because, as per the provisions of Sec. 153C of the Act, where the AO satisfied that material ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idence of Shri G. Kumar, husband of the assessee. During the course of search, some loose sheets were found and seized which contains one Sale Deed belongs to the assessee, Smt. K. Gomathi. During the course of post search proceedings, summons u/s. 131 of the Act, was issued and sworn statement was recorded from the assessee. In response to the specific question Nos. 7-10, she admitted that source for purchase of property is out of her past savings, agricultural income and from the savings of her husband Mr. G. Kumar. She further admitted that investment in purchase of four properties was not disclosed and also agreed to offer undisclosed income of Rs. 46,79,055/-. Consequent to search, notice u/s. 153C of the Act, was issued. In response to notice, the assessee has filed her return of income on 30.08.2018 admitting total income of Rs. 50,01,810/- which includes undisclosed income of Rs. 46,79,055/- offered during the course of search. The case has been taken for scrutiny and during the course of assessment proceedings, the assessee contended that although, she had offered undisclosed income towards source for purchase of property as unexplained, but source for purchase of property ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see and sustained the additions made by the AO. The relevant findings of the Ld. CIT(A) are as under: 6.1. I have gone through the assessment order, the grounds of appeal and the written submissions made in this regard. Briefly search was carried out at the residence of Sh. S. Ravi on 13/7/2016 and loose sheets pertaining to sale deed belonging to the appellant was also found and seized. The appellant is the proprietor of Cholan Technology and during her statement recorded u/s. 131 she stated about 4 immovable properties (out of 19 properties) were not reflected in her books of accounts. She admitted the same as her unaccounted income and offered an amount of Rs. 46,79,055/- as her, unaccounted income under the head income from other sources for A.Y. 2015-16. Another two residential plots in Ariyalur worth Rs. 15,32,455/- were also admitted as not reflected in books of accounts are stated that the surrender of Rs. 46,79,055/- included this investment as well. In the original return for the Asstt. year under consideration filed on 3/08/2016 the appellant reported an income of Rs. 3,22,750/- only. However, in response to notice u/s. 153C dated 09/07/2018 appellant filed return ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, but there is no estoppel against law. Because, the law is very clear in as much as unless authority of law, no taxes can be collected. She further submitted that no doubt the assessee has admitted undisclosed income towards source for purchase of property and also filed her return of income in response to notice u/s. 153C of the Act, and paid taxes, but fact remains that gift received from her husband, is not taxable. Therefore, the assessee has made a rightful claim before the AO and sought to exclude income offered towards gift received from her husband. The AO as well as the Ld. CIT(A) without appreciating the fact simply sustained the additions made by the AO. 8. The Ld. DR, on the other hand, submitted that search was conducted in the residence of Shri S. Ravi on 13.07.2016 and during the course of search, some loose sheets were found pertaining to the assessee. During the course of post search, investigation summons were issued to the assessee and a sworn statement was recorded and in response to a specific question, she had admitted that source for purchase of property, was not explained and further, agreed to offer undisclosed income of Rs. 46,79,055/-. The assessee h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urce was out of gift of Rs. 46,75,000/- received from her husband Mr. G. Kumar. 10. We have given our thoughtful consideration to the arguments of the assessee in light of reasons given by the AO as well as the Ld. CIT(A) to reject the claim of so called gift received from her husband and we find that right from the date of search on 15.07.2016 to the date of filing of return of income in response to notice u/s. 153C of the Act on 30.08.2018, the assessee claimed that source for purchase of property is out of her business income, agricultural income and savings of her husband. She further claimed that four properties were not recorded in her regular books of accounts and also not disclosed in the return of income filed for the relevant assessment year. She had also agreed to offer undisclosed income of Rs. 46,79,055/- and further, filed return of income and disclosed undisclosed income and paid relevant taxes. Therefore, from the above it is very clear that the assessee had admitted the fact of not disclosing four properties in her regular books of accounts and also could not explain source for purchase of four properties with necessary evidences. The assessee never claimed befo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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