TaxTMI 
TaxTMI 
2021 (5) TMI 513
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.... 69A of the Act. (2)The appellant submits that section 69A being related to money, bullion, jewellery or other valuable article not recorded in the books of accounts only, it would not cover the amount earned from sale of shops as the appellant was not found owner of any money, bullion, jewellery or other valuable article. (3)On the facts and circumstances of the case and as per law, the position taken by the CIT(A) that no deduction against this income of Rs. 7,25,03,689/- is allowable to the assessee, is not tenable. (II) Unabsorbed business loss/depreciation The learned CIT(A) ought to have allowed adjusting the unabsorbed business loss/depreciation of the earlier years. (III) Miscellaneous The appellant craves leave to add Alter or vary any of the grounds of appeal." 3. Although, this appeal filed by the Assessee for Assessment Year 2010-11 contains multiple ground of appeals. However, at the time of hearing we have carefully perused all the grounds raised by the assessee and noted that solitary grievance of the assessee is that ld CIT(A) has treated unaccounted income from sale of shops of Rs. 7,25,03,689/-, as deemed income u/s 69A of the Act instead of Business ....
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....e case of Fakir Mohmed Haji Hasan V/s. CIT reported in 247 ITR 290, the assessing officer made addition of Rs. 7,25,03,689/- under section 69A of the I.T. Act and no set off of business loss/depreciation, against this income was allowed to the assessee. 6. Aggrieved by the order of the Assessing Officer, the assessee carried the matter in appeal before the Ld. CIT(A), who has confirmed the addition made by the Assessing Officer. Aggrieved by the order of the Ld. CIT(A), the assessee is in appeal before us. 7. Shri Hiren Vepari, Learned Counsel for the assessee submits that a sum of Rs. 7,20,00,000/- is business income of the assessee, which was admitted during the survey proceedings and which relates to M/s Shanti Enterprises (vide answer to question No.9, paper book page 14). The excess cash found to the tune of Rs. 5,03,689/- during the survey proceedings, is also an undisclosed income which is belonged to M/s Shanti Enterprises, (vide answer to question No.8, paper book page 13). The assessee is a developer of Shops for textile market and has admitted during the survey proceedings that a sum of Rs. 7,20,00,000/- has been earned as an unaccounted money, through sale of shops du....
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.... during the survey proceedings, the said net income of Rs. 7,25,03,689/- (Rs. 7,20,00,000 by sale of shops and Rs. 5,03,689 excess cash found during survey) is a net income and no any expense to be claimed, that is, the said income is over and above the income which had already been disclosed by the assessee in his firm, M/s. Shanti Enterprises, therefore, now the assessee should not claim expenses against the undisclosed income of Rs. 7,25,03,689/- by taking the same in the income side and claiming expenditure, such as, cost of construction Rs. 21,88,50,070/-, Administrative and other expenses Rs. 15,72,114/-, Selling and distribution expenses Rs. 1,50,000/- and Financial charges Rs. 25,154/-. The ld DR also contended that undisclosed income of Rs. 7,25,03,689/- should be assessed under the head "Income from other sources" and set off benefit from business loss/depreciation may be denied. Apart from this, ld DR has primarily reiterated the stand taken by the Assessing Officer, which we have already noted in our earlier para and is not being repeated for the sake of brevity. 9. We have heard both the parties and carefully gone through the submissions put forth on behalf of the ass....
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....unt, we find merit in the propositions canvassed by ld DR for the Revenue. The ld DR for the Revenue has rightly pointed out that "income side the assessee has included Rs. 7,25,03,689/- as part of undisclosed income along with income from sale of shops to the tune of Rs. 19,94,05,000/- and other income to the tune of Rs. 1,35,82,093/-. Total of these three incomes come to Rs. 28,54,90,782/-. Against these three incomes, the assessee has claimed the combined expenditure viz: cost of construction Rs. 21,88,50,070/-, Administrative and other expenses Rs. 15,72,114/-, Selling and distribution expenses Rs. 1,50,000/- and Financial charges Rs. 25,154/-. Total of these expenses come to Rs. 22,05,97,338/-. Therefore, assessee has claimed the proportionate expenses against the undisclosed income of Rs. 7,25,03,689/-, hence assessee has distorted the facts and presented a false profit and loss account." Hence, it is abundantly clear that assessee has claimed proportionate expenses against the undisclosed income of Rs. 7,25,03,689/- and thus deviated from his statement taken during survey. 10. The Leaned Counsel, contended that during the assessment stage, the assessee submitted before t....