TaxTMI 
TaxTMI 
2011 (9) TMI 1009
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.... 132(4), recorded during the course of search. He has declared income from house property, consultancy business, long-term and short-term capital gains and other sources. 3. Coming to ground no. 1, the facts are that in the course of search, a paper was found, marked as page no. 31 of annexure LP-3. The paper is a computer print-out on which details of expenses and investment in respect of a house property have been mentioned, totaling to Rs. 27.90 lakh. The case of the assessee had been that this paper does not belong to him as the property has neither been sold nor purchased by him or any of his family members during the last 7 years. The bank statement of the assessee also does not contain any entry of Rs. 15.00 lakh stated to be the amount paid to any party or builder. This paper may belong to the transaction of the friend Shri P. Hanumant Rao, who stayed with him in his house at Hyderabad. This house was sold in the year 2006-07. The AO considered the facts and came to the conclusion that since the document has been found from the residential premises of the assessee and he has failed to prove that the transaction belongs to any other person, the presumption is that the docum....
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....aneous work, electrical work, bath rooms, bank, curtain 5-rods, aggregating to Rs. 27,76,100/-. Thus, the balance amount to be returned is shown at Rs. 13,900/-. The case of the ld. DR is that the expenses have been clearly stated for which no explanation has been given, therefore, the amount is includible in the total income of the assessee. 3.2 In reply, the ld. counsel referred to the findings of the AO and the ld. CIT(Appeals). It is submitted that the loose paper does not contain the name of the assessee, details of the property sold or purchased or the period to which the transactions relate to. The paper contains an entry regarding receipt of Rs. 15.00 lakh from the bank. The assessee had mentioned at the outset that no such entry exists in his bank account or the bank accounts of his family members. Therefore, the document is in the nature of a dumb document and no tax inference can be drawn on the basis of this paper. In this connection, reliance is placed on the decision of "C" Bench of Mumbai Tribunal in the case of Chiraayu Estate & Development Pvt. Ltd. for assessment year 2006-07 in ITA No. 263/Mum/2010 dated 24.8.2011, a copy of which has been placed before us. This....
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.... or the maximum amount of investment per acre in a particular place. He has not taken into consideration the explanation of the assessee about the variations in purchase prices. It is on record that all the parties in the group have jointly and severally made the investment in particular piece of land, which was ultimately transferred to the joint venture as capital contribution. Looking into the facts of the case in its entirety we agree with the findings of the CIT(A) that the A.O. has not found any material, whatsoever, so as to invoke the provisions of section 69B. The findings of the CIT(A) on this issue are as under: - "2.16 Looking to the facts of the case in its entirety, I find that the A.O. has not found any material, whatsoever, so as to invoke the provisions of section 69B of the I.T. Act. The appellant has purchased land alongwith other entities at different intervals during the year at various prices. These prices are determined on various factors. The forces of market conditions and the phenomena of demand & supply would be a determinative factor in fixing the price of the land at the same place during different time. A land which is purchased, say at Rs. 1,00,000/-....
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....ebutted by the assessee on the date of search itself when it was stated that the paper does not belong to him or his family member or that they never dealt in such a property. Nothing further has been done by the revenue to shift the onus on the assessee to establish ownership and truthfulness of the contents qua the assessee. Coming to the provision contained in section 69B, it is provided that where the assessee has made an investment in any financial year, which is not recorded in the books of account, if any, maintained by him, and the assessee offers no explanation about the nature and source of investment or the explanation offered by him is not satisfactory in the opinion of the assessing officer, the value of investment made may be deemed to be the income of the financial year. As already held in the case of Chiraayu Estate & Development Pvt. Ltd. (supra), the burden is on the revenue to show that the assessee has made an investment. Thereafter, the investment has to be related to a financial year. The course of events show that revenue has not proved that investment in the immovable property was made by the assessee. The year in which the investment was made is also not di....
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.... by him. In reply, the ld. counsel also referred to the findings of the lower authorities and agitated that the quantity of gold weighing about one kg. could be reasonably held by the assessee and his family. In this connection, he relied on the decision of Hon'ble Delhi High Court in the case of Ashok Chaddha Vs. ITO dated 05.07.2011 in ITA No. 274/2011, a copy of which has been placed before us. Two questions were adjudicated upon in this case, i.e., whether, the entire jewellery found during the course of search belonged to the assessee; and (ii) the ITAT erred in wrongly upholding the addition of the entire jewellery weighing 506.9 grams without appreciating that the said jewellery was acquired at the time of marriage and over a period of time thereafter? The Hon'ble Court considered the rival submissions and mentioned that it has to be kept in mind that the assessee was married for more than 25-30 years. The jewellery in question is not very substantial. It is a normal custom for a woman to receive jewellery in the form of strihan or on other occasions, such as birthday of a child etc. Collecting jewellery of 906.900 grams by a woman in a married life of 25-30 years is not abn....