TaxTMI 
TaxTMI 
TaxTMI 
2016 (12) TMI 409
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....in law in holding the decision of ld. CIT (A) in deleting the undisclosed income of Rs. 43,63,821/- being unexplained investment in purchase of land holding that the assessee discharged the onus to prove the source of investment without appreciating the facts of the case and material brought on record by the A.O. 2. Whether on the facts and circumstances of the case, the Hon'ble ITAT was justified in law in holding the decision of ld. CIT (A) in deleting the undisclosed income of Rs. 43, 63, 821/- being unexplained investment in purchase of land holding that the assessee discharged the onus to prove the source of investment without appreciating that the assessee had failed to produce principal officer of M/s City Developers Ltd. from....
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....in other information. The assessee replied that land has been purchased for a sum of Rs. 40,92,000/- and the payment has been made out of bank account of the company and the amount was arranged by M/s City Developers Pvt. Ltd., Kolkata. It was also stated that Shri Sunil Khatri was the secretary of this society formed on 01.04.1992 and no return of income had been filed. Accordingly, the A.O. came to the conclusion that the assessee has failed to produce the books of account and to discharge the onus to substantiate its claim that M/s City Developers Pvt. Ltd., Kolkata had provided the money invested in the said land. Accordingly, he held that the investment in purchase of land is unexplained and yearwise investment was worked out. In this....
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....is aspect but because of gap of 12 years this enquiry could not be made. In such a situation, it cannot be said that the amount taken from M/s City Developers Pvt. Ltd. was infact the undisclosed income of the assessee which has been routed through the bank account of this company. Against the order of Learned CIT(A), department preferred an appeal before the Hon'ble ITAT. The Hon'ble ITAT vide their order in Income Tax Act, 1961 No.398/Luc/07 dated 28.09.2007 dismissed the appeal of the department by observing as under : "We have considered the rival submissions and have perused the record of the case. During the course of search, sale deed of property in the assessee's name was found from which it transpired that assessee h....