TaxTMI 
TaxTMI 
2021 (4) TMI 1193
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....aring the income of Rs. 25,58,554/- and agricultural income of Rs. 3,00,000/-. The AO completed the assessment u/s 143(3) of the Act determining the assessed income of the assessee at Rs. 1,22,45,722/- by making the following additions: 1. Income from civil contracts - Rs. 48,87,040/- 2. Long term capital gains - Rs. 6,86,651/- 3. Unexplained cash credits - Rs. 5,71,000/- 4. Unexplained investment in the form of Promissory notes - Rs. 33,76,000/- 5. Interest income from amounts Lent - Rs. 2,76,422/- 6. Unexplained cash - Rs. 50,680/- 7. Unexplained investment in Jewellery - Rs. 12,19,714/- 3. When the assessee preferred an appeal before the CIT(A), the CIT(A) partly allowed the appeal of the assessee. 4. Aggrieved by the order of the CIT(A), the assessee is in appeal before the ITAT. 5. Before us, the assessee has raised 13 grounds of appeal, out of which ground Nos. 1 to 4 & 6 are not pressed, therefore, the same are dismissed as not pressed. 6. As regards ground No. 5 and its sub-grounds (a) to (c) regarding estimation of profit, before the AO the assessee submitted that he had maintained regular books of ....
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....Road, Proddatur. 7.1 Before the CIT(A), the assessee submitted that the AO had arrived the share of the Long Term Capital Gains at Rs. 54,93,210/- and the share of the assessee was at Rs. 6,86,651/-. The same was added in the hands of the assessee in the status of Individual on protective basis. The A. O. has not accepted the purchase value as per document in the assessment for the assessment year 2008-09, he has adopted the purchase value of the property at Rs. 3.5 crores, whereas, while arriving the capital gains on the sale of the part of the above property, the AO has adopted the purchase price as that of the sale deed at Rs. 1,49,00,000/- which is against the principles of natural justice. 7.2 After considering the submissions of the assessee, the CIT(A) observed as under: 6.2) I have considered the assessment order and submissions of the assessee. The claim of development expenses is denied by the AO as the sale document does not mention anything about any development carried on by the assessee as claimed. The action of the AO is justified as the assessee has no answer to the finding of AO even during the appellate proceedings. Further, it is seen that the issu....
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....ed creditor, the said amount was treated as unexplained cash credit. 8.1 Before the CIT(A), the assessee submitted additional evidences and the CIT(A) called for a remand report from the AO, and the AO submitted remand report, which was confronted to the assessee, against which the assessee explained his version, which was extracted by the CIT(A) in his order at page 9 & 10 of his order. 8.2 After considering the submission of the Assessee, the CIT(A) confirmed the addition by observing that when AO specifically asked the assessee to produce the alleged creditor for examination which could help in proving the genuineness of the transaction, the assessee failed to do so and the documents produced by the assessee may have proved the identity but not the genuineness of the transaction. He further observed that the assessee took loan from an agricultural labour itself is shrouded in mystery and do not readily appeal to common sense. 8.3 Considered the rival submissions and perused the material on record as well as gone through the orders of revenue authorities. On perusal of record and submissions of the assessee, the assessee could not satisfy the basic ingredients laid down ....
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....ee at pages 98 to 117 which contain copy of return of income, computation of income and financial statements filed by the HUF for the AY 2006-07 to 2010-11. HUF is filing returns and declaring income, which is as under: S.No. AYs Return of income Status 1. 2006-07 1,08,400 HUF 2 2007-08 2,09,100 HUF 3 2008-09 4,26,685 HUF 4 2009-10 3,88,300 HUF 5 2010-11 2,62,665 HUF Total 13,95,150 9.3 The allegation of the AO that the advances of Rs. 1,26,000/- given by the assessee that HUF had no sufficient funds to give advance, is factually incorrect, as per the above table, the HUF is filing returns regularly. Therefore, the advance of Rs. 1,26,000/-, which is a meagre amount, cannot be doubted and accordingly, we direct the AO to delete the addition of Rs. 1,26,000/- made in the hands of the assessee. 9.4 As regards the addition of Rs. 23,50,000/-, the AO has treated the sum of Rs. 23,50,000/- as unexplained investment. In this regard, the assessee filed books of account in which the assessee has shown payments to the parties out of his own funds generated and the books of account filed b....
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....rmed, the interest thereon was disallowed, is also confirmed. 10.2 Considered the rival submissions and perused the material on record as well as gone through the orders of revenue authorities. On perusal of the interest calculation done by the AO @ 20% on the entire pro-notes, we are of the view that the calculation done by the AO is not correct. The assessee has admitted the interest of Rs. 2,17,101/-. The AO has calculated the interest on the entire amount of Rs. 33,76,000/- whereas we have directed the AO to delete the additions of Rs. 9,00,000 + 1,26,000/- + 23,50,000/- on the ground that the source of the same were explained by the assessee. We have observed that the assessee has explained the source of Rs. 23,50,000/- and directed the AO to delete this addition; however, he is liable for interest income thereon only @ 24% as offered on the pro-notes as observed by the AO. Therefore, we direct the AO to recalculate the interest on Rs. 23,50,000/- . This ground is partly allowed. 11. As regards ground No. 11 and its sub-grounds (a) to (c) regarding addition of Rs. 50,680/- in respect of cash found during the search, the ld. AR of the assessee has not pressed this grou....