2016 (7) TMI 828

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....r; "1. The orders of the authorities below in so far as they are against the appellant, are opposed to law, equity, weight of evidence, probabilities, facts and circumstances of the case 2. The learned CIT[A] is not justified in sustaining an addition of Rs. 8,75,000/- out of the original addition of Rs. 77,50,000/- made as the alleged unexplained money received by the appellant u/s 69A of the Act under the facts and in the circumstances of the appellant's case. 3. Without prejudice to the right to seek waiver with the Hon'ble CCIT/DG, the appellant denies himself liable to be charged to interest U/s 234-A, 234-B and 234-C of the Act, which under the facts and in the circumstances of the appellant's ca....

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.... by the ld. CIT(A) in paras 3, 3.1 & 3.2 of his order and these paras are re-produced hereunder for the sake of ready reference; " 3. Unexplained money brought to tax u/s 69A : Rs. 77,50,000/-. 3.1 Consequent to the setting aside of the assessment order dated 31/12/20008 passed by the AO u/s 153A read with section 143(3) of the Act by the CIT -II vide his order u/s 263 of the Act dated 29/03/2011, the AO sought details from the appellant regarding the amount of Rs. 77,50,000/- found to have been received by him from M/s People's Education Society on an examination of the seized material marked A/PES/13 mentioned above. The appellant in his reply dated 20/07/2011 stated that, s a result of the search operation, a total amou....

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....irm (M/s Bangalore Sits and Estates) for the assessment years 2003-04 and 2004-05 or in the assessment of the appellant for the assessment year 2004-05. Holding thus, the AO brought to tax the sum of Rs. 77.50 Lakhs as the appellant's money u/s 69A of the Act". 5. Being aggrieved, the assessee carried the matter in appeal before the ld.CIT(A) and the ld.CIT(A) sustained part of addition of Rs. 8.75 Lakhs out of total addition made by the AO of Rs. 77.50 Lakhs and deleted the balance addition of Rs. 68.75 Lakhs. 6. Now the assessee is in appeal before us for the part addition sustained by the ld. CIT(A) and the revenue is in appeal for the relief granted by the ld. CIT(A). 6.1 It was submitted by the ld. AR of the assessee that on p....

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....riginal assessment u/s 143(3) of the IT Act, that the assessee's contention is correct. It was the submission of the ld. AR of the assessee that in the light of these facts of the present case, the amount of Rs. 77.50 Lakhs noted on page-25 of the paper book which is already included in the amount of Rs. 124.00 Lakhs noted at page-25 of the paper book and this amount is already offered to tax by the assessee although, in two assessment years i.e partly in the present assessment year and partly in the assessment year 2007-08. At this juncture, it was pointed out by the Bench, that it is settled law that income should be taxed in correct year and therefore, when the registry was affected in the present year, how it can be accepted that part a....

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....eceived by the assessee is Rs. 124.00 Lakhs and this amount of Rs. 124.00 Lakhs includes the amount of Rs. 90.00 Lakhs break-up of which is available on page 25 of the paper book which comprises of Rs. 77.50 Lakhs in cash and Rs. 12.50 Lakhs by way of pay order. Under these facts, in our considered opinion, total amount that can be taxed in the hands of the assessee should not exceed the amount of cash received Rs. 77.50 Lakhs. Out of this amount of Rs. 77.50 Lakhs, the ld. CIT(A) has confirmed an addition of Rs. 8.75 Lakhs and in the facts of the present case, we do not find any infirmity in the order passed by the ld.CIT(A) on this aspect. The balance amount of Rs. 68.75 Lakhs has been offered to tax by the assessee to the extent of 50% i....