TaxTMI 
TaxTMI 
2015 (4) TMI 90
X X X X Extracts X X X X
X X X X Extracts X X X X
....iscloses under the head Investment, Plot advance of Rs. 39,00,500/-. 3. The Ld. CIT (A) and Ld. AO erred under circumstances and facts of the case and in law without appreciating that appellant being agriculturalist he has invested accumulated cash agricultural income to purchase agricultural land at Nadurkhi Bk Tal Rahata, Dist. Ahmadanagar. 4. Without prejudice to Ground No.1 the Ld. CIT (A) erred on facts of the case and in law by not appreciating that the Ld, AO has worked out appellant's income for AY 2009-10 is of Rs. 4,82,573/- only and not unearth any other taxable source of income. 5. The Ld. CIT(A) under circumstances and facts of the case and in law not provided reasonable and sufficient opportunity to explain his case. 6. Relief claimed: The appellant request that addition effected by Ld. AO and confirmed by Hon'ble CIT (A) be directed to be deleted and allow appellant's appeal. 7. The appellant craves leave to Add/modify /delete/amend all/ any of ground of appeal. 3. The issue raised in the present appeal is against the addition made on account of unexplained investment in purchase of land at Nandurkhi, Tal-Rahata, Dist. Ahmadanagar, amounting to Rs. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....dger account of the Sanshta in the assessee's book showed credit balance of Rs. 5,49,995/-. When confronted, the learned Authorized Representative for the assessee conceded that the liability was wrongly shown. 6. In the above said background, the assessee was show caused as to why the books of account should not be rejected under section 145(3) of the Act and the net income be computed by adopting the net profit rate of 2.5% on the disclosed turnover. Rejecting the explanation of the assessee vis-à-vis nature of business, the Assessing Officer computed the income from business by estimating the net profit @ 2.5% on the disclosed turnover of Rs. 1.93 crores and the net profit was worked out at Rs. 4,82,573/- as against the net profit disclosed in the books of account at Rs. 3,00,754/-. With regard to the investment in the land at Nandurkhi, the assessee was called upon to explain the source for the differential amount of investment of Rs. 21,30,000/- i.e. investment + stamp duty + registration charges paid on 20.08.2008. In reply, the assessee maintained that there was in fact, difference of Rs. 13,29,500/- i.e. the cost of plot at Rs. 52,30,000/- less balance figure of Rs.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ves account statement for the period 25.03.2008 to 31.03.2008, which is not relevant to the impugned A.Y. No other evidences are filed to substantiate the appellant's claim that the investments in land made in cash are out of unaccounted income as per books. Therefore, I have no hesitation, in confirming the addition of Rs. 21,30,000/- under this head." 8. The assessee is in appeal against both the above said additions. 9. The learned Authorized Representative for the assessee took us through the facts of the case and pointed out that the estimation of Dadasaheb Harinhau Gondkar income from business was not correct in view of the facts of the case. It was pointed out by the learned Authorized Representative for the assessee that as per the registered sale deed dated 20.08.2008, the total consideration was Rs. 50,00,000/- and further, sum of Rs. 2,30,000/- was paid as stamp duty. The next plea of the assessee was that, in addition to the payments in assessment year 2008-09 totaling Rs. 28,00,000/- which was out of withdrawal from the bank account and the balance consideration of Rs. 23,30,000/- was paid in the current year. The source of investment was out of business and out of a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....isions of section 145(3) of the Act are attracted and the book results declared by the assessee cannot be relied upon. After dismissing books of account, next resort was to estimation of income. The assessee during the year under consideration had disclosed turnover of Rs. 1,93,02,933/- on which, it had declared net profit of Rs. 3,00,754/-. The Assessing Officer however, applied NP rate at 2.5% on total sales and computed the income at Rs. 4,82,573/-. We uphold the order of Assessing Officer in this regard and dismiss the ground of appeal No.1 raised by the assessee. 12. The second issue raised by the assessee was against the addition of Rs. 21,30,000/- as income from other sources. The assessee had made investment in the purchase of property in Nandurkhi. On the examination of books of account, it was noted that there were no withdrawals on or about the date of purchase of land. The assessee had made the said investment in the property in two financial years i.e. in 2007-08 and 2008-09. The assessee had placed the copy of Purchase Deed at pages 7 to 18 of the Paper Book. The perusal of the said Purchase Deed reflects that the assessee had made the undermentioned payments in fina....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 04.04.2008 drawn on Andhra Bank. The balance cheques in the preceding year were also drawn on Andhra Bank which is the business bank account of the assessee, hence, there is no merit in making any addition on account of said payment of Rs. 2,00,000/-. 15. Now, coming to balance payment of Rs. 19,00,000/- in cash and the expenditure incurred on stamp duty and registration charges totaling Rs. 2,30,000/-. Though the assessee claims that the same was out of its agricultural income and that of his family, some portion was also claimed to be invested out of the business income of the assessee. The perusal of audited financial statements relating to the financial year 2008-09 at pages 22 to 32 of the Paper Book reflects that the assessee had declared the investment in plot at Rs. 39,00,500/- in its balance sheet as on 31.03.2009. Once the amount has been declared by the assessee in the balance sheet as on 31.03.2009 as investment in the purchase of plot, then investment to that extent merits to be accepted in the hands of the assessee. One point also be clarified herein that the sum of Rs. 2,00,000/- paid by cheque drawn on Andhra Bank, dated 04.04.2008 stands covered in the investment....