2018 (10) TMI 1672

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....ed in the appeal of the assessee is that the ld. CIT(A) has erred in confirming the addition of Rs..7,34,750/- made as "unexplained investment" under section 69 of the Income Tax Act, 1961 ["Act" in short]. 2. Brief facts of the case are that the assessee filed his return of income for the assessment year 2005-06 on 29.10.2005 admitting a taxable income of Rs..1,17,976/-. The return was processed under section 143(1) of the Act accepting the returned income. Subsequently, the case was selected for scrutiny and an order under section 143(3) of the Act dated 31.03.2005 was passed by assessing an income of Rs..3,96,980/-. Thereafter, there was a survey conducted at the business premises of M/s. Ambika Appalam Company Pvt. Ltd. under section....

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....9, a sheet, vide impounded documents in ANN/LS/BS/IMP-2, shows the cost of flat as Rs..24,91,250/- with the title 'Final Statement' given by M/s. Aadhlthiya Constructions was taken from the business premises of M/s. Ambika Appalam Co. Pvt. Ltd. The assessee has not agreed with the statement of M/s. Aadhithiya Constructions, since the amount does not confirm with their books of accounts. Since the assessee has not given any proof to counter the amount reflected in the statement of M/s. Aadhithiya Constructions, the difference of amounts of Rs..24,91,250/- and Rs..17,56,500/- which comes to Rs..7,34,750/- was disallowed and added to the income of the assessee as unexplained investment under section 69 of the Act. 3. The assessee ca....

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....t of sale of undivided share of land and department store to be constructed with Aadhithiya Constructions, which was entered into on 14.01.2003, the total cost of undivided share of land and cost of construction of departmental store in the ground floor comes to Rs..17,00,000/- excluding stamp duty and other expenses. The assessee claims to have paid a total sum of Rs..17,56,000/- towards cost of the land, construction, stamp duty and other expenses and the payments were duly reflected in the assessee's accounts on the correct dates. However, during the course of survey under section 133A of the Act on 07.08.2009, a sheet, vide impounded documents in ANN/LS/BS/IMP-2, shows the cost of flat as Rs..24,91,250/- with the title 'Final Statem....

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....aid by the assessee in cash of Rs..4,00,000/- being token advance on 14.01.2003 as mentioned in the agreement at para "C)" page 2, should have been accounted. In fact, the same was accounted by the assessee as per assessee's books of account. But the said amount of Rs..4,00,000/- paid on 14.01.2003 as per the agreement is not found reflected in the "final statement" of Aadhithiya Constructions, when the company has stated to have been received various amounts to the extent of Rs..22,00,000/- on different dates between 17.08.2002 to 25.05.2004, inter alia, the credential of the "final statement" is doubtful. Under the above facts and circumstances, the Assessing Officer is directed to call for the complete details of M/s. Aadhithiya Construc....