2022 (1) TMI 182

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....ted to be engaged in Real Estate business, although, as per the assessment order, no business activity had been carried out during the year under consideration. The return of income for the captioned year was filed declaring total income at Rs. 13,33,113/-. The return of income was initially processed u/s 143(1) of the Income Tax Act, 1961 (in short 'the Act') and subsequently the case was selected for scrutiny under CASS parameters. During the course of assessment proceedings, the Assessing officer noted that there were additions to the fixed assets amounting to Rs. 5,20,000/,- (as was reflected in the balance sheet). The assessee was required to furnish the details of addition to fixed assetsalong with documentary evidences. In re....

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....On following grounds:- a. On the facts in the circumstances of the case, the assessing officer has erred in making addition to the Total Income, of Rs. 5,20,000/- as unexplained expenditure by invoking the provisions of section 69C of the Income Tax Act, 1961. The same is liable to be fully deleted. b. On the facts and in the circumstances of the case, the assessing officer has erred in making addition to the Total Income, of Rs. 5,20,000/- as unexplained expenditure without appreciating the fact that in the instant case there is no dispute with regard to the source of capital expenditure and it is also not in dispute that the assessee incurred expenditure and it is not the case of Revenue that the assessee claimed such ex....

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....on record. We have also perused the Balance Sheet along withits relevant annexures for the immediately preceding assessment year, wherein, it has been suitably demonstrated by the Ld. AR that the impugned amount represented capital work in progress as on 31.3.2011 and during the year under consideration, it has only been transferred from capital work in progress to fixed assets account. Therefore, undisputedly, no fresh expenditure has been incurred during the year under consideration and the addition to fixed assets is merely a transfer entry. 5.1 We have also gone through the copy of the ledger account for the capital work in progress for the year ended 31.3.2011 and we note that most of the work pertains to labour charges paid for cle....