2011 (11) TMI 438

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....e is the Proprietor of M/s. Kiran Granite & Exports. The return filed by the assessee was processed under Section 143(1)(a) of the Income-tax Act, 1961 (herein after called as the 'Act'). The Assessee and his wife purchased 4 acres and 10 guntas of land as per the registered sale deed dated 15.12.1996 for consideration of Rs. 8,50,000/-. A search was conducted on 04.08.1998 in the case of Sri V. Sadananda S/o. Sri Venkatagiriyappa, from whom the assessee and his wife purchased land in question. At the time of search Sri Venkatagiriyappa was dead. His son Sri. V. Sadananda, in his statement made before the search party said to have admitted that they have received a consideration of Rs.75 lakhs. On the basis of the aforesaid information, the....

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....case of Kishinchand Chellaram v. CIT [1980] 125 ITR 713/4 Taxman 29, the Assessing officer was not justified in making the aforementioned addition. Accordingly the appeal was allowed. 3. Being aggrieved by the same, the revenue preferred an appeal in ITA No.1115(Bang.)/2002, Bangalore and cross objections in C.O. No. 109(Bang.)/2005 was filed by the assessee in the said appeal. The Tribunal, by order, dated 06.01.2006 dismissed the appeal and the cross objection. 4. Being aggrieved by the said order, this appeal is filed by the revenue which was admitted on 23.10.2007 for considering the following substantial questions of law framed in the appeal, which reads as follows : (1) Whether the addition of Rs. 52,50,000/- as on money trea....

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....pearing for the appellant, and learned counsel appearing for the respondent on the aforesaid substantial questions of law. 6. Learned counsel for the respondent submits Sri V. Sadananda, son of Venkatagiriyappa, vendor of the assessee has given a statement that they have received consideration of Rs. 75.00 lakhs whereas the sale deed has been registered at Rs. 8,50,000/- and the Assessing Officer collected the material regarding market value notified from the revenue and an order of assessment has been passed. The Appellate Authority and the Tribunal was not justified in setting aside the order of assessment and ought to have confirmed the order of Assessment. Further, submitted that the assessee himself has disclosed the additional inco....