TaxTMI 
TaxTMI 
2014 (2) TMI 266
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....s erred in law and on facts in confirming the addition to the tune of Rs.64,84,976/- u/s.69 of the Act on the ground of alleged unexplained investment in land. 2) The learned Commissioner of Income Tax (Appeals) has erred in law and on facts in confirming the addition to the tune of Rs.4,00,000/- u/s.68 of the Act on the ground of alleged unexplained credit entries. 3) It is, therefore, prayed that the above additions confirmed by the learned Commissioner of Income Tax (Appeal) be deleted. 4) The Appellant prays for granting such other relief as may be deemed just and proper by your Honours considering the factual and legal aspects of the case of the appellant. 5) The Appellant craves leave to add, amend, alter, delete, substitu....
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....pective. He submitted that the Revenue has not placed on record any material in support of any allegation that there was unexplained investment in land. He submitted that the assessee has only made noting that the money were to be paid to the tenants, however the matter was not resolved with the tenants and the money was not paid. He submitted that the AO was not justified in treating the noting made on a piece of paper as the unexplained investment representing the on-money. He submitted that the AO has not placed any corroborative evidence on record. He submitted that the ld.AO as well as the ld.CIT(A) both the authorities have wrongly interpreted the statement of the assessee. The ld.counsel for the assessee submitted that the noting on ....
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....95 lakhs for the two plots of land of 'Sai Ichcha Project' and asked to explain the same. The assessee replied that out of 95 lakhs rupees as said for land/plot, only 30 lakh rupees is for the land and 65 lakh is to be paid to 'bhadhut' (Tenants). It is also observed that the assessee stated that initially he had estimated Rs.65 lakhs for Bhadut. Later on, he estimated 80 lakh rupees more in addition to the 65 lakhs rupees estimated earlier. The AO did not accept the explanation of the assessee on the basis that the statement of the assessee is not only after thought but also the change in stand. The AO observed that even if it is presumed that no 'on-money' has been paid by the assessee for both parts of the said land, why a professional r....
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....m that the assessee has already made payment of 'on- money' to the land owners. The admitted position remains that the assessee had purchased two plots of land in a particular locality. It cannot be imagined that the market value of such land would not be available for considering whether the value declared by the assessee is correct or not. The AO has not made any effort to find out as to what rate was prevalent at that point of time in nearby locality. Merely on the basis of that some figure is written on a piece of paper seized from the premises of the assessee, in our considered view, would not be sufficient to make the addition of that figure in the income of the assessee as unexplained investment, assuming that the assessee had writte....
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....failed to prove the capacity of the creditors. On the contrary, ld.CIT-DR relied on the orders of the authorities below and submitted that a categorical finding by the AO as well as by the ld.CIT(A) that the assessee failed to prove the capacity of the depositors as well as the genuineness of the transaction. More particularly, the bank account shows that the cash deposits immediately before advancing the loan to the appellant and the depositors had shown very manner in the return of income. He relied on the decision of Hon'ble Gujarat High Court rendered in the case of Blessing Construction vs. ITO reported at (2013) 32 taxmann.com 366 (Gujarat). He drew our attention towards para-7 of the decision dated 13/03/2013 of Hon'ble Gujarat High ....