TaxTMI 
TaxTMI 
2013 (7) TMI 520
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....ces and the facts of the case and in law, the Appellate Tribunal is justified in holding that the A.O. is required to be directed to treat the funds received on account of family settlement as funds available in the hands of the assessee ? B. Whether in the circumstances and the facts of the case and in law, the Appellate Tribunal is justified in deleting the addition of Rs.22,11,770/- by way of unexplained stock made by the AO ? C. Whether in the circumstances and the facts of the case and in law, the Appellate Tribunal is justified in deleting the addition towards unexplained expenditure on foreign tour of Rs.75,000/-, made by the AO ? D. Whether in the circumstances and the facts of the case and in law, the Appellate Tribunal is....
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....ore the CIT (Appeals) by the assessee-respondent, it upheld the version of the assessee-respondent by holding thus : "4.1 I have carefully considered the contention of the Learned Counsel as well as gone through the records. The AO had declined to believe the appellant's contention on the ground that, the brothers of the appellant, who are now the key persons of the Balaji Group had any credentials or creditworthiness to be parted as part of the family settlement. Further, the disclosure of unaccounted sales to the extent of Rs.4.40 crores were from AY 2000-01 and onwards and therefore, there was no cash generation on account of unaccounted sales prior to this. However, the habit of not recording full sales were prevalent since beginning....
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....of and not tenable in the eyes of law is mere suspicion not corroborated by any material on record. Suspicion, however be strong, cannot partake character of proof. As against this the fact that the appellant's brothers had sufficient cash generated from unaccounted sales of the M/s.Balaji Wafers P Ltd. and they are the party to such agreement leads to conclude that the observation of the AO is misplaced and he is directed to treat the funds receive on account of family settlement, as funds available in the hands of the appellant. Therefore, this ground of the appellant is allowed." 4. This was further carried in appeal by the Revenue before the Tribunal and it concurred with the findings of the CIT (Appeals). The Tribunal found no defec....
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....fore, deserves no further consideration. xxx xxx xxx 9. As far as the third question is concerned, this very question has been considered by us in Tax Appeal No.2296 of 2009 in the case of Commissioner of Income tax v. Vishal Sushilkumar Poddar, dated June 22, 2011, whereby this Court has decided this issue by holding that the Revenue cannot take recourse to Section 50C of the Act in case of purchaser of the property in following terms : "4. With regard to the second issue, the same relates to addition under Section 69C. A flat was purchased by the assessee at Athwa Lines, Surat where the office of the Sub-Registrar had levied additional stamp duty by verifying the property at Rs.28,50,928/-. The provision of Section 50C of the Act....
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....e being no scope of applying the said provision to the purchaser, it deleted the addition made under Section 69C to the tune of Rs.7,88,929/-. 6. Resultantly, it can be inescapably concluded that there is no infirmity in the reasonings given by the Tribunal. The interpretation made by it requires or calls for no interference." 3. Insofar as question No.B is concerned, the Tribunal has deleted the addition of Rs.22,11,770/- added by the Assessing Officer as unexplained investment in stock. It appears that during the course of survey at the premises of M/s.Sindon Jewels, wherein the assessee-respondent is a key person and had owned up the activities of the firm, stock of Rs.22,11,770/- had been found without any books of accounts nor we....