TaxTMI 
TaxTMI 
2016 (7) TMI 166
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....g satisfaction note, proceedings were initiated u/s 153C r.w.s. 153A of the Act and information was received in the office of ld. Assessing Officer on 13.8.2008. In the seized documents it was observed that assessee society had acquired 6535 sq.m. of land at Wadaj, Ahmedabad for a consideration of Rs. 2,28,72,500/- vide sale deed dated 4.12.2004 and sale consideration was paid in two parts -first on 1.6.2004 at Rs. 60,00,000/- and the second on 3rd December 2004 at Rs. 1,68,72,500/-. On further investigation it was observed that the PAN Directory of Gujarat did not contain the name of assessee. Accordingly, notices were issued addressed to the Chairman of the Society for filing return of income and after lot of pursuations, the return of income which was required to be filed on 24.9.2008 was finally filed on 2nd December, 2009 in compliance to notice u/s 153C r.w.s. 153A of the Act showing income at Rs.NIL, and copy of PAN Card bearing no.AAEAS 2037G was furnished along with balance sheet and profit and loss account for financial year 2004-05. 3. In the course of assessment proceedings it was observed by ld. Assessing Officer that there was a cash receipt of Rs. 23,86,030/- shown ....
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....f the I.T. Act, 1961 and not u/s.!53C r.w.s. 143(3) of the I.T. Act, 1961. . . : . 4. The Learned Commissioner of Income Tax (Appeals) ought to have considered the fact that the notice for initiation of proceedings u/s.!53C r.w.s. 153 A in the case of the appellant has been issued on 14.08.2008 i.e. after time gap of more than three years from the date of search i.e. 09.02.2005 . Further satisfaction note recorded by DCIT, C.C .l(l) Ahmedabad was dtd.08.08.2008 received by the A.O. on 13.08.2008, which is after finalizing the assessments in the case of searched party. 5. The Learned Commissioner of Income Tax (Appeals) has erred in confirming the addition of Rs. 23,86,030/- made by the Assessing Officer for the alleged undisclosed income u/s,68 of the I.T. Act, 1961. 6. The appellant craves leave to add, alter, amend, or modify any of the grounds of appeal on or before the date of heaving of appeal. 7. At the outset the ld. AR of the assessee has not pressed ground nos. 1,2,3 & 4. So these grounds are dismissed as not pressed. 8. Through ground no.5 assessee has challenged the action of ld. CIT(A) for confirming the addition of Rs. 23,86,0303/- made u/s 68 of the Act. The ld. ....
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....ary concern of Umang H. Thakkar in the name of M/s Swaminarayan Enterprise and the necessary details including books of account relating thereto were produced. Ld. AR, therefore, submitted that Swaminarayan Enterprise had sufficient source and cash out of which Rs. 21,94,650/- was given to the assessee on various dates and the same is therefore, explained and for the remaining amount of Rs. 1,91,380/- which includes petty amount of Rs. 255/- received from 66 members, Rs. 15,455/- each received from 10 members and Rs. 20,000/- from Ganesh N. Thakkar of which necessary names and details are already available on record and, therefore, ld. CIT(A) was not justified in confirming the addition of undisclosed income of Rs. 23,86,030/- u/s 68 of the Act. 10. On the other hand, ld. DR supported the orders of lower authorities. 11. We have heard the rival contentions and perused the material on record. Through this ground, the assessee is aggrieved with the action of ld. CIT(A) in confirming the addition of Rs. 23,86,030/- as undisclosed income made u/s 68 of the Act. From going through the submissions made by ld. AR as well as relevant pages of the paper book relating to cash book of the a....
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....d to give business advances to the assessee society and, therefore, the sum of Rs. 23,86,030/- should not be treated as unexplained income and, accordingly, we delete the impugned addition made by ld. Assessing Officer and allow the ground of assessee. 15. Ground No.6 is general in nature, which needs no adjudication. 16. Assessee's appeal is partly allowed. 17. Now we take up Revenue's appeal in IT(SS)A No.274/Ahd/2011 for Asst. Year 2005-06. Revenue has raised following grounds:- 1. The Ld. CIT(A)-XVI, Ahmedabad has erred in law and on facts in deleting the addition of Rs. 1,19,16,119/- made by the AO on account of unexplained investment u/s.69 of the Act, without properly appreciating the facts of the case and the materials brought on record by the Assessing Officer. 1.2 The Ld. CIT(A) has erred in law and on facts in holding that the addition has been made by the AO on the basis of valuation report of the Registered Valuer and thereafter, increasing the volute on estimate basis and not on the basis of material suggesting investment or expenditure for the purchase of the property without appreciating that the cost of land determined by the DVO was based on various comparabl....
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....soever the total area of the land shown in the valuation report is 10324 sq.m., whereas the land purchased by the assessee society measures 6535 sq.m. only and, therefore, ld. Assessing Officer has made the addition on estimation, surmises and conjectures and, therefore, ld. CIT(A) has rightly deleted the impugned addition of Rs. 1,91,16,119/-. 21. We have heard the rival contentions and perused the material on record. Revenue is aggrieved with the action of ld. CIT(A) deleting the addition of Rs. 1,91,16,119/- on account of unexplained investment u/s 69 of the Act. With reference to the facts discussed above, we find that ld. Assessing Officer has taken the basis of the valuation report meant for wealth tax purposes for a piece of land measuring 10324 sq.m. valued on 31.3.2002 at Rs. 6,03,02,484/- and on the basis of this information calculated the fair market value of the land purchased by assessee by valuing it at Rs. 4,19,88,618/- by applying the following formula :- 63.3% of 6,03,02,484 (6535 sq.m. /10324 x 100) 63.3% = Rs. 3,81,71,472/- and 10% appreciation in the value of land = Rs. 38,17,147/- i.e. Total Rs. 4,19,88,619/-. 22. We further observe that ld. CIT(A) has delete....