TaxTMI 
TaxTMI 
TaxTMI 
2023 (4) TMI 555
X X X X Extracts X X X X
X X X X Extracts X X X X
....utdoor catering. He is proprietor of "Amruta Caterers". He also works as a Manager at Sri Krishna Kalyan Mantap, Deshpandenagar, Hubballi. 4. There was a survey under section 133A of the Income Tax Act, 1961 (hereinafter called 'the Act') conducted in the business premises of the assessee on 27.02.2015. The survey was consequent to the information that the assessee purchased an immovable property at Deshpandenagar, Hubballi for Rs.90 lakhs. In the course of survey, the statement of the assessee was recorded on 27.02.2015. In that statement, the assessee voluntarily declared a sum of Rs.25,44,400/- for Assessment Year 2014-15 in addition to his normal income. The assessee purchased land and building under sale deed dated 06.05.2013 for Rs.9....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ated 29.06.2016, determined the value of the cost of land and building at Rs.95,90,900/- as on 06.05.2013. The AO, based on the report of the DVO, added a sum of Rs.5,90,900/- which was over and above the sum of Rs.90 lakhs for which the assessee purchased the property. The AO added the aforesaid sum to the total income of the assessee as unexplained income under section 69 of the Act. 7. Aggrieved by the order of the AO, assessee preferred appeal before the CIT(A) (NFAC). Before the NFAC, the assessee contended that the conditions to be fulfilled for invoking Section 69 are not at all evident in this case. Firstly, the assessee should have made an investment, which are not recorded in the books if any maintained. The assessee has made an ....
X X X X Extracts X X X X
X X X X Extracts X X X X
..../- made based on Valuation Report dated 29/06/2015 is not as per the provisions of Income Tax Act. 1961 and the same has to be deleted. It was contended that the AO has wrongly invoked the provisions of Section 142A of the Act even though the same are inapplicable to the appellant and brought to income tax Rs. 5,90,900/-under Section 69 as unexplained investment to the declared income on the basis of valuation report. The assessment done by adding Rs. 5,90,900/- u/s. 69 of the Act on the basis of valuation report is void ab initio since it has no valid legal ground and against the provisions of the Income Tax Act, 1961. 8. The NFAC, however, did not address the issue as to whether reference could be made under section 142A of the Act in th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nion of the Assessing Officer, satisfactory, the value of the investments may he deemed to be the income of the assessee of such financial year.' A careful perusal of the provision divulges that in order to invoke this provision, it is sine qua non that the assessee must have made investments which are not recorded in the books of account. The factum of the assesses having made investment should be first proved by the AO, only then the burden shifts on the assessee to prove the source of investment. Such invesment outside the books of account must be positively proved by the AO and not only inferred from the attending facts. If such an investment outside the books is not proved, the assessee cannot be called upon to prove the source of ....