TaxTMI 
TaxTMI 
2006 (7) TMI 178
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....2001, dated March 10, 2004, for the assessment year 1991-92: "(i) Whether, on the facts and in the circumstances of the case, the learned Income-tax Appellate Tribunal has erred in law in not considering the issue regarding examining the creditors, who had advanced the money to the assessee for booking the property, whereas specific directions were given in the order passed under section 144A of the Income-tax Act, 1961. (ii) Without prejudice to the above, whether, on the facts and in the circumstances of the case, the learned Income-tax Appellate Tribunal has committed an error of jurisdiction in holding that the surrender before the Income-tax Department against the unexplained investment noticed. during search proceedings was corr....
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....nt. The plea of the assessee was that this investment was funded out of advance money received in cash from the prospective buyers who had booked shops in the shopping complex. A total of Rs. 7,40,000 stated to have been received during the year in question. It was pleaded that the amount was received through Mr. Sukhmal Jain, a property dealer at Delhi, through whom the shops were booked. However, no details, etc., were furnished. The assessee even could not produce Mr. Sukhmal Jain to substantiate his plea. The affidavit got from Mr. Sukhmal Jain was rejected by the Assessing Officer because of inconsistency noticed therein. Accordingly, the investment was treated as unexplained and added to the income of the assessee. On appeal the ca....
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....t as per the provisions of section 69 of the Income-tax Act, 1961, addition in respect of unexplained investment is required to be made in the financial year immediately preceding the assessment year when such investment had been made and the same had not been recorded in the regular books of account of the assessee. Admittedly if the source of investment made in the financial year 1990-91 relevant to the assessment year 1991-92 is not explained, the addition of the same amount can only be made in the assessment year 1991-92. The assessee cannot take the benefit of the fact that in subsequent year the assessee had made disclosure of income to cover such investment in the subsequent assessment year until or unless there is evidence that such....
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....egating to Rs. 6,68,050. It is not the case of the assessee that out of the total cost of construction of Rs. 16,94,310 certain payments were outstanding, which were made in the subsequent year. No such submission has also been made in the written submissions filed before us. Admittedly, in the books of account, the assessee have accounted for cost of construction of Rs. 8.75 lakhs only. As regards the sale proceeds, which could be considered available for making the investments, would be only to the extent there were utilized for making such payments, which have already been taken into account by the learned Commissioner of Income-tax (Appeals). In the absence of any further evidence, no further credit could be given on this account and th....