9911796707
TMI Blog2025 (4) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... urchase of land; (vi) Disallowance of expenditure. The same are adjudicated as under. 2. Addition of unaccounted payments and investments 2.1 From the assessment order, it could be seen that the assessee is associated with Pooja Guthka group of cases which was searched on 07- 10-2010. The assessee admitted income of Rs. 516.07 Lacs. During the course of search, certain incriminating documents were found which were confronted to the assessee during the course of assessment proceedings. These documents include loose sheets page nos. 7,8,12,13 & 14 of Annexure LPS-5, party BR-8 wherein certain figures were written. The same has been extracted in the assessment order. These figures allegedly reflected certain receipts by the assessee. Though the assessee denied receipt of any amount as noted therein, Ld. AO alleged that the said figures represent advance received by the assessee from certain persons for purchase of lands. The amount were written in coded language viz. 21-40B. The figure '21' would be deciphered to represent Rs. 21 Lacs. The Page Nos. 8 & 9 contained receipts from unexplained sources whereas Page Nos.12 to 14 indicates unexplained payments by the assessee, the source ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sure of Rs. 615.70 Lacs under various heads and also offered the same in the return of income. The disclosure include sum of Rs. 390 Lacs as allegedly received by the assessee as advance. The assessee made another disclosure of Rs. 85 Lacs in the name of Smt. Mamta Gupta. The said amounts have duly been offered to tax and incorporated in the regular books of accounts. The Ld. AO completely overlooked this fact and made separate addition for the same. As rightly held by Ld. CIT(A), adding the same again would amount to double taxation which is not permissible under the law. The assessee honored his statement by incorporating undisclosed income found recorded in various incriminating material / loose papers for taxation and offered the same to tax. Further, upon perusal of LPS-5, Page No.7, it could be seen that these are rough jottings / scribbling without any vital details. This paper is in the nature of dumb document which do not give any meaning to the figures / notings therein. The figures are in coded language and the same has been deciphered on mere presumption without there being any corroborative evidence. Merely by looking at this paper, it could not be inferred that the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l lands. These lands were purchased during the years 2006 to 2010 and sold in current year. Considering the ratio of various judicial decisions as enumerated in the impugned order, Ld. CIT(A) held that Ld. AO was not justified in treating the gains as arising out of an adventure in the nature of trade. Accordingly, the impugned addition was deleted against which the revenue is in further appeal before us. 4.3 It is factual finding of Ld. CIT(A) that the pieces of lands as sold by the assessee, at the relevant point of time, were rural agricultural land since the same were not covered within the municipal limits of Gwalior before 31-01-2014. The copies of Khasra / Khatoni and sale deed established the fact that the lands were agricultural lands. Further, the lands were held by the assessee as investment and not a trading stock. All these facts remain uncontroverted before us. Therefore, no fault could be found in the adjudication of Ld. CIT(A), on this issue. The corresponding grounds of revenue's appeal stand dismissed. 5. Addition of fresh credits 5.1 The assessee reflected fresh credits in it books from 6 persons / entities. The same aggregated to Rs. 232.67 Lacs. The Ld. AO r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nting entry and no money was received by the assessee. The assessee purchased certain property and issued three post dated cheques which were outstanding as on 31-03-2011. The same were encashed in next year which is evidenced by bank statement. Therefore, this addition has rightly been deleted. We concur with the adjudication of Ld. CIT(A) and dismiss the corresponding grounds of revenue's appeal. 5.4 The assessee, in its appeal, has contested confirmation of addition of Rs. 1.50 Lacs and addition of post dated cheque of Rs. 1.14 Lacs as issued to Shri Satender Singh. It could be seen that with respect to credit of Rs. 1.50 Lacs, the assessee has filed balance confirmation containing PAN and address of the lender. This being the case, the ingredients of Sec.68 were duly fulfilled. Therefore, we delete this addition. The amount of Rs. 1.14 Lacs represents post dated cheques given to Shri Satender Singh as part of advance payment. The cheques remained unrepresented for two years and the entry was reversed. Thus, the assessee has not received any money. It was merely an accounting entry which stood reversed later on. This being the case, the addition of Rs. 1.14 Lacs stands deleted. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of interest. The assessee reflected interest income of Rs. 3.46 Lacs against which the assessee claimed interest expenses of Rs. 0.34 Lacs which was held to be allowable against interest income. Aggrieved, the revenue is in further appeal before us. 7.2 We find that this issue has been clinched in correct perspective by Ld. CIT(A). Further, the aforesaid findings of Ld. CIT(A) remain uncontroverted before us also. Therefore, no interference is required in the impugned order, on this issue. The corresponding grounds of revenue's appeal stand dismissed. The appeal of the revenue stand dismissed. 8. The subject matter of assessee's appeal is confirmation of addition of loan of Rs. 2.64 Lacs which has already been adjudicated by us in preceding para 5.4. The remaining issue in assessee's appeal is addition of Jewellery and disallowance of expenses. The same are adjudicated as under. 9. Addition of Jewellery 9.1 During search jewellery weighing 4055.73 grams valuing for Rs. 79.76 Lacs was found and the assessee was directed to explain the source of the same. The assessee attributed the jewellery to various family members. The Ld. AO accepted the explanation for jewellery stated to ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
