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TMI Blog2023 (11) TMI 1095X X X X Extracts X X X X X X X X Extracts X X X X ..... r partner under his signature on behalf of the firm. Thus, in such fact and circumstances the contention of the assessee cannot be rejected. It is equally important to note that there was no information available on record about the utilization of the money disclosed by the partnership as income except the investment made by the assessee which is also evident from the financial statement of Om Corporation in the year ending 31/03/2011. As such, we have perused the financial statement of OM Corporation for the year ending as on 31/03/2011, we note that the M/s Om Corporation has shown an advance for the sum which makes abundantly clear that the disclosure made by the firm has been utilized in the investment of land as discussed above. Accordingly, we do not find any infirmity in the finding of the CIT(A). Hence, the ground of appeal of the Revenue is hereby dismissed. Addition on account of cash found during the search operation - AO during the assessment proceedings found that there was cash found as on the date of search, the source of which was explained by the assessee out of the agriculture - assessee has also submitted the agriculture bills in support of his claim - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. The Ld. CIT(A) erred in deleting the addition made by the AO for Rs. 1,60,37,000/- representing unexplained investment in the purchase of land. 4. The facts in brief are that the assessee in the present case is an individual and part of Savalia Group. There was a search and seizure operation u/s 132 of the Act, in the group cases of Savalia including residential premises of the assessee as on 06/01/2011. The assessee during search has made a disclosure of Rs. 13,63,000/- as undisclosed income in the year under consideration. The assessee also claimed to have made investment in cash in the land located at Gatrad bearing survey No. 765 and 760 in the AYs 2010-11 and 2011-12. The investment in cash in the year under consideration was of Rs. 1,74,50,000/- only. On question by the AO about the source of cash payment in the impugned land, it was submitted by the assessee that the investment in the impugned land represents the application of income disclosed by the firm namely M/s Om Corporation in its different assessment years amounting to Rs. 4,20,18,620/- only. The amount of disclosure by the firm in the year under consideration was at Rs. 2,12,54,802/- only. 4.1 However ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the three years in the case of firm by assessing the income declared. M/s. Om Corporation A.Y. 2009-10 2010-11 2011-12 Returned income Rs. 8,38,000/- Rs. 1,99,25,800/- Rs. 2.12.54,8207 - Rs. 4,20,18,620/- Assessed Income Rs. 8,38,000/-Rs. 1,99,25,8007- Rs. 2,12,54,820/- AO has not brought any material on record which indicates that undisclosed income earned in the case of M/s. Om Corporation was utilised for making any other investment or was spent for any other purpose. In such a situation AO is not justified in rejecting the claim of appellant that amount invested in Gatrad land by appellant is application of the income of the firm.t As mentioned earlier, Shri Jagdish Savalia who is brother of appellant, is a partner in M/s. Om Corporation and the day-to-day affairs of the firm were being looked after by the appellant. This is also proved by the fact that during the course of search cash of Rs. 4,41,000/- belonging to OM Corporation was found and seized from the residence of appellant. This contention of app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the cash book belonging to the partnership firm was recovered from the possession of the assessee. Likewise, the cash book of the partnership was also written by the assessee himself. This fact can be verified from the submission made by the assessee which is reproduced as under: Your appellant has further to submit that all the financial transaction of himself and Om corporation are made and managed by him which is evident from the seized materials. Annexure A-1 Rojmel (cash book) of M/s.OM Corporation etc. Written by the appellant himself. Hence, your appellant had filed a reply dated 13.02.2013 which is reproduced as under: he copy of letter dated 13.02.2013 is enclosed as per Annexure-3. 11.1 The above submission of the assessee was admitted by the Ld. CIT(A), and Ld. DR has not brought anything contrary to the same. Besides the above, it is also seen that the brother of the assessee Shri Jagdish Savalia is a partner in the firm. Shri Jagdish Savalia in his statement has also submitted that the day-to-day affairs of the firm was looked after by the assessee which is evident from the finding of the Ld. CIT(A), which is reproduced above. Thus, being a close nexus between ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the period in dispute and therefore he treated the same as undisclosed income of the assessee. 14. On appeal, the Ld. CIT(A) also confirmed the order of the AO by observing as under: Appellant had made only a general claim that sum of Rs. 5,20,000/- represents his agricultural income. However, no evidence in support of this claim has been filed either before AO of the undersigned. Certain bills for sale of agricultural products were filed before AO, but as mentioned by the AO in the assessment order, they pertain to the subsequent period. I therefore, hold that appellant has failed to satisfactorily explain source of cash of Rs. 5,20,351/- Addition of Rs. 5,20,351/- is justified in such a situation and the same is confirmed. Ground no. 1 of the appeal is thus dismissed. 15. Being aggrieved by the order of the Ld. CIT(A), the assessee is in appeal before us. 16. The Ld. AR before us contended that the assessee has been showing income from the agriculture activities for the last many years. The Ld. AR has also filed the copy of the computation of income for the AY 2010-11, wherein the income from agricultural activities for Rs. 1,24,800/- was disclosed. Accordingly, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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