2009 (8) TMI 753

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.... 3. Both the parties were heard regarding the issue raised and legal implications thereof. 4. On careful consideration of the material available on record and analyzing the same in the light of rival submissions of both the parties, the undisputed facts relating to the issues are that during the course of search, statement of Shri Om Prakash Rathi, father of assessee was recorded who declared undisclosed investment in construction of house at Rs. 3 lakhs. The assessee was asked to explain the sources of investment in the construction/repair of house jointly owned by himself and his father. In response, the assessee stated that the sale proceeds of goods purchased from M/s P.S.S. Ganeshan & Sons on 29th July, 2002 amounting to Rs. 3.14 l....

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.... learned CIT(A) at p. 4 of the impugned order. The assessee has further submitted that the sale proceeds of the first two purchases and the cash were utilized for construction of the house. Therefore, it will not amount to any undisclosed sources as the sources thereof were explained as stated supra. This plea of the assessee was rejected by the AO observing that the account books prepared by the assessee after search, though on the basis of regular documentary evidences like regular sales and purchase bills prepared after the search. The AO has not accepted the proposition made out by the Cochin Bench of this Tribunal reported in Divine Builders vs. Asstt. CIT (2000) 66 TTJ (Coch) 474 wherein it was held that the AO was not correct in reje....