TaxTMI 
TaxTMI 
2022 (7) TMI 845
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....ari Mahadu Sanap was an employee of Maharashtra State Government working as Tehsildar in Panvel, against whom the Anti Corruption Bureau carried out a search operation. Consequent thereto the present assessments were completed in the hands of both the assessees. 4. We shall first take up the appeals filed by Smt. Lata Sanap. The first issue urged in all the years relates to legal issues, wherein the assessee has contended that the proceedings initiated u/s 153A of the Act is not valid, even though the notices were issued was u/s 153A read with sec. 153C of the Act. Further, it is contended that the satisfaction recorded u/s 153C of the Act was vague and does not satisfy the well settled parameters in this regard. However, we notice that the Ld CIT(A) has addressed both the issues by his detailed order, which we find to be reasonable and in accordance with law. Accordingly, we reject both the legal grounds urged by the assessee. 5. The next issue relates to the addition of agricultural income declared by the assessee treating it as income from other sources. This issue is common in all the assessment years from 2001-02 to 2007-08. The details of agricultural income declared by....
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.... the availability of agricultural income in AY 2001-02 to 2004-05, when the assessee is holding agricultural land. In fact, the AO has accepted part of agricultural income in AY 2002-03 and 2004-05.Accordingly, we are of the view that there is no reason to restrict the agricultural income to 40% of the bills produced. The generation of agricultural income without bills cannot be ruled out. Since there was failure on the part of the assessee in substantiating the quantum of agricultural income, in the facts and circumstances of the case, we are of the view that the entire income cannot be accepted. Accordingly, we are of the view that the agricultural income may be accepted to the extent of 70% of the amount declared by the assessee in all the years, i.e., from AY 2001-02 to 2007- 08.Accordingly, we modify the orders passed by Ld CIT(A) on this issue in all the years under consideration and direct the AO to accept agricultural income to the extent of 70% of the amount declared by the assessee in each of the years. 8. We shall now take up individual issues in each of the assessment years. In AY 2001-02, the assessee is challenging the addition of Rs.8.00 lakhs made u/s 68 of the A....
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.... appeal filed for AY 2003-04. The AO assessed unexplained investment in KVPs to the extent of Rs.3,75,000/-. The assessee had declared interest income of Rs.30,000/- from KVPs in AY 2003-04. The AO noticed that the Balance Sheet did not contain investments in KVPs. Accordingly, the AO computed the corresponding amount of investment relatable to the interest income of Rs.30,000/- taking the interest rate @ 8%, which was computed at Rs.3,75,000/-. The AO assessed the same as unexplained investment in the hands of the assessee. The Ld CIT(A) upheld the addition to the extent of Rs.2,50,000/-. It is the submission of the assessee in the grounds of appeal that the KVPs were purchased in the year 1997 and the said investment was reflected in the Balance Sheet till 31.3.2002. It is also submitted that the said KVPs were found physically during the course of search. We notice that these factual aspects have not been properly appreciated by the tax authorities. We also noticed that the addition has been made by computing the possible value of investment on the basis of interest income declared by the assessee. If the investment has not been made during the year under consideration, there is....
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....ith similar directions. 16. The next issue urged in AY 2005-06 relates to the addition of unexplained sundry creditors balance of Rs.4,65,412/-. The assessee did not furnish the details of sundry creditors on the reasoning that his books of accounts have been washed away by floods. Hence the AO assessed the sundry creditors balance as income of the assessee. The Ld CIT(A) also confirmed the same. In the interest of natural justice, we are of the view that the assessee may be provided with one more opportunity to prove the sundry creditors by obtaining confirmation from them. Accordingly, we set aside the order passed by Ld CIT(A) on this issue and restore the same to the file of AO. After affording adequate opportunity to the assessee, the AO may take appropriate decision in accordance with law. 17. We shall now take up the appeal filed for AY 2006-07. The AO made addition of sundry creditors balance of Rs.2,74,119/- in AY 2006-07 on identical reasoning discussed by him in AY 2005-06. We have set aside the order passed by Ld CIT(A) in AY 2005-06 for the reasons discussed in the preceding paragraph. Accordingly, on identical reasoning, we restore this issue to the file of AO. ....