TaxTMI 
TaxTMI 
2014 (12) TMI 67
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....see is an individual. Search and seizure operation was conducted in the premises of the assessee on 29-1-2009. Pursuant to the search and seizure operation, a notice u/s 153A was issued to the assessee on 17- 9-2009 calling for a return of income. In response to the said notice, the assessee on 28-10-2009 filed a return of income for the impugned assessment year declaring a total income of Rs. 4,43,020/- derived from business and other sources. In the course of assessment proceedings, the Assessing Officer while verifying the return of income noticed that the assessee had shown remuneration of Rs. 60,000/- share profit of Rs. 60,639 and income of Rs. 24,463/- from M/s Hyderabad Steel Section Mills as income under the head 'business and profession'. In the profit and loss account, the assessee has shown gross profit of Rs. 2,29,351/- on a total sales made of Rs. 97,27,567/-. In addition to the aforesaid income from business, the assessee had shown rental income of Rs. 37,419/- and interest income of Rs. 14,276/-. After claiming various expenditures, the net profit was shown at Rs. 24,462/-. The Assessing Officer on noting the fact that the assessee had not furnished any break-up of ....
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....n be seen from para 2.1 of the assessment order, the Assessing Officer has stated that since the assessee has not produced its books of accounts, bill vouchers etc., to substantiate its claim of expenditure, the Assessing Officer finding no other option had to resort to estimation of profit and apply the rate of 10% which according to him is reasonable percentage of profit in the particular line of business carried on by the assessee. As can be seen the CIT (A) has deleted the addition by observing that without pointing out any defect or discrepancy in the books of accounts or allowability of expenditure, the Assessing Officer could not have resorted to estimation of profit. But, in our view, when the assessee has not produced its books of accounts or bills and vouchers in support of claim of expenditure, the Assessing Officer could not have pointed out any defect or discrepancy in the books of accounts or inadmissibility of any particular expenditure in the absence of books of accounts, bills, vouchers or even break-up of the expenditure. In such an event, the Assessing Officer could not have verified the authenticity of the expenditure claimed. 9. On a specific query made by the....
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....urces'. 11. Briefly the facts are, during the assessment proceedings, the Assessing Officer while verifying the P & L A/c noticed that the assessee has shown the rental receipt from letting out of landed property at Hyderabad Steel Section Mills to the Reliance Infratel Limited for Rs. 37,419/- and interest income of Rs. 14,276/- and claimed expenditure against them. The Assessing Officer felt that the receipt of rent and interest should have been shown under the head income from 'other sources' and accordingly treated the said amount as income from 'other sources' as against the assessee's claim of business income. The CIT (A) relying upon a decision of Hon'ble Supreme Court in case of Universal Plast Limited vs. CIT (237 ITR 454) held that the plot of land was leased out by the assessee for commercial activity for a temporary period for making the profit for the business, hence the lease rental received by the assessee by exploiting such commercial asset is to be treated as business income. So far as the interest income of Rs. 14,276/- is concerned, the CIT (A) held that since the same represent the interest accrued on deposits made with the APSEB and since the deposit related t....
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....only other surviving issue as raised in ground no.5 is with regard to the issue of allowability of exemption u/s 54F of the Act to the assessee. 18. Briefly, the facts are during the assessment proceedings the Assessing Officer noticed that the assessee has shown income from long term capital gains from sale of landed property but at the same time the capital gains computed on sale of land at Rs. 15,94,332/- was claimed as exempt u/s 54F of the Act on account of reinvestment in construction of a house property. The Assessing Officer on verifying the claim of the assessee with reference to his wealth tax return filed for asst. year 2004-05 noted that the assessee has not acquired/constructed a new house but has invested the sale proceeds in the old asset itself for its improvement/development. The Assessing Officer therefore denied exemption u/s 54F of the Act. The assessee challenged the denial of exemption u/s 54F before the CIT (A). 19. It was contended before the CIT (A) by the assessee that the assessee has reinvested the sale proceeds for constructing an additional floor on the existing house bearing No.13-6-433 at plot No.157 Netaji Nagar Co-operative Society, Hyderabad. He....
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.... year before or two years after the date on which the transfer took place had purchased a residential house or within the period of three years, has constructed a residential house, then there will be exemption of capital gains. However, the proviso to the said section makes it clear that the assessee will not be entitled to avail exemption u/s 54F(1) if he owns more than one residential house other than the new asset on the date of transfer of original asset or purchases any other residential house other than the new asset within period of one year after the date of the transfer of original asset or constructs any residential house other than the new asset within the period of three years after the date of transfer of the original asset. In the present case, undisputedly, the assessee has invested the capital gains in construction of an additional floor as claimed by the assessee over an already existing house property. 23. Therefore, the issue before us is whether the additional floor stated to have been constructed can be considered to be a distinct and separate house independent of existing house property. In this context, the decisions relied upon by the assessee, no way help....
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....shortfall, the assessee submitted that the total value of jewellery declared by the entire group at Rs. 13,06,80,312/- was more than the value adopted by the department at Rs. 11,32,77,199/-. It was further submitted that the value adopted by the valuer defers from valuer to valuer since the gold content is estimated approximately by the valuer and the value of precious stones is also estimated by the valuer. It was submitted that the total jewellery declared by the assessee was without considering the value of jewellery offered for assessment year 2008-09. He further contended that the jewellery belonging to Mr. Krishna Kumar and his family members as found, was inventorised only in the names of the assessee and two other family members. Therefore, if all the facts are considered, there would not be much difference in the valuation of jewellery. 27. It was further submitted that the additions made to the jewellery on account of presents received on different occasions, gifts received from family members which were offered by them in their respective returns have not been inventoried at the hands of the respective owners of the jewellery. The Assessing Officer however was not conv....
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....,31,027/- and Rs. 90,01,432/- respectively were not considered. It was further contended by the assessee that quantitative particulars are not mentioned in the wealthtax return filed by the group whose value was adopted as basis by the Assessing Officer. It was submitted that if the jewellery at the prevailing rate of Rs. 5010 per 10 grams as on 31-3-2002 and then valued at the rate of Rs. 13,900 per 10 grams as on 29-1-2009 the date of valuation, the value of jewellery would exceed the value as determined by the Registered Valuer. With regard to the difference in valuation on account of rate as on 31-3-2008 and 29-1- 2009, it was submitted that the difference would be Rs. 53,59,112. So far as the quantification of excess jewellery by the Assessing Officer with reference to the jewellery in the wealth-tax return is concerned, it was contended by the assessee that the jewellery to the tune of Rs. 60,36,175/- standing in the name of Krishna Kumar HUF was not taken into account while considering the total jewellery of the assessee and his family members. The assessee further contended that though the value of jewellery of articles form part of valuation report, the same was not consid....
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....at no new facts or material were placed before the CIT (A) and the CIT (A) had only relied upon the information as submitted in the wealth-tax return of the members available with the Assessing Officer. The learned authorised representative for the assessee submitted that the power of the first appellate authority being co terminus with that of the Assessing Officer, he can examine and re-appreciate the evidence. In this context, the learned authorised representative for the assessee relied upon the following decisions:- i) CIT vs.Raghuraji Agro Industries Pvt. Ltd. (349 ITR 260) (All) ii) Jute Corporation of India Ltd. Vs. CIT (187 ITR 688 (SC) iii) CIT vs. Nirbheram Daluram (224 ITR 610) iv) ITO vs. Industrial Roadways (305 ITR (AT) 219] 32. We have considered rival submissions of the parties and perused the material on record as well as the orders of the revenue authorities. We have also examined the decisions relied upon by the learned authorised representative for the assessee. The issue before us precisely is whether there is an excess of jewellery to the extent of Rs. 1,27,60,063/- as determined by the Assessing Officer. As can be seen from the assessment order, the Ass....
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.... cannot be treated as unexplained. While deciding the issue, the Assessing Officer should also take into account the assessee's contention with regard to the difference arising on account of rate of gold as on 31-3-2008 and as on 16-3-2009. The Assessing Officer shall decide the issue after affording a reasonable opportunity of being heard to the assessee. ITA No. 969 /HYD/2012-asst. Year 2007-08:- 33. The only effective ground in this appeal of the department is as under:- "The CIT (A) ought to have given opportunity to the Assessing Officer to examine the fresh information filed before the CIT (A) as per Rule 46-A of IT Rules." 34. Briefly the facts are, during the assessment proceedings, the Assessing Officer on the basis of information available with him noticed that the assessee has sold a plot bearing No.2 admeasuring 300 sq. yards, Survey Nos.234,235,238 and 275(P) situated at Nizampet village, Qutbullahpur Mandal, for a consideration of Rs. 30,00,000/-. The assessee had claimed the cost of acquisition of the said land at Rs. 25,65,000/-. The Assessing Officer noted that as per the sale deed dated 29-3- 2005 the assessee had purchased the said plot of land for a total co....
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....ing Officer has clearly mentioned that in absence of the details regarding disbursement of loan as well as sanction letter from HDFC or any statement from the bank to substantiate the disbursement of the loan he did not accept the claim of Rs. 24 lakh. Nothing has been produced before us to show that the details of disbursement of loan from HDFC were submitted before the Assessing Officer to substantiate its claim of availing loan for construction of the property. As it appears, the CIT (A) also has not allowed the Assessing Officer to have his view on the evidences/information submitted by the assessee during appellate proceedings. In this view of the matter, we are inclined to set aside the order passed by the CIT (A) and remit the issue to the file of the Assessing Officer for deciding the same afresh, the Assessing Officer shall consider the entire evidences with regard to the claim made by the assessee towards cost of acquisition and thereafter decide the issue after affording a reasonable opportunity of being heard to the assessee. 39. In the result, this appeal is treated as allowed for statistical purposes. ITA No.970/Hyd/2012- asst.Year 2009-10 40. The department has ra....
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....f on verification, assessee's claim of having made the investment in the earlier assessment year is found to be correct, then no addition can be made by the Assessing Officer. The Assessing Officer shall afford a reasonable opportunity of being heard to the assessee. 44. In the result, the department's appeal is allowed for statistical purposes. ITA No.971/Hyd/2012- asst..year 2009-10:- 45. The department has filed this appeal being aggrieved of the order passed by the CIT (A) in deleting the addition of Rs. 1,12,67,886/. 46. Briefly, the facts of the issue are, during the assessment proceedings, the Assessing Officer noted that during the search operation at the premises of the assessee, gold jewellery found was valued at Rs. 2,71,00,414/- by the Registered Valuer. However, the value of gold jewellery declared by the assessee and his family members in their wealth tax returns at Rs. 1,59,02,528/- which was considered by the Assessing Officer in his assessment order. Though the assessee offered some explanation with regard to the difference of Rs. 1,12,67,886/- between the valuation made before the registered valuer and the valuation made in the wealth-tax return, the Assessing....