TaxTMI 
TaxTMI 
2023 (11) TMI 1095
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....unt of unexplained investment of Rs. 1,60,37,000/- for purchase of land 2. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in law and on facts in fixing the onus on A.O that he had not brought any material on record to indicate that undisclosed income earned in the case of M/s. Om Corporation was utilized somewhere else and on that basis deleted the addition as above in ground (1). 3. The Ld. CIT(A) erred in deleting the addition made by the AO for Rs. 1,60,37,000/- representing unexplained investment in the purchase of land. 4. The facts in brief are that the assessee in the present case is an individual and part of Savalia Group. There was a search and seizure operation u/s 132 of the Act, in the group cases of Savalia including residential premises of the assessee as on 06/01/2011. The assessee during search has made a disclosure of Rs. 13,63,000/- as undisclosed income in the year under consideration. The assessee also claimed to have made investment in cash in the land located at Gatrad bearing survey No. 765 and 760 in the AYs 2010-11 and 2011-12. The investment in cash in the year under consideration was of Rs. 1,74,50,000/- only. O....
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....d Shri Jagdish Savalia vide their submission dated 2/2/2011 declared an amount of Rs. 5 crore as undisclosed income. Subsequently vide letter dated 1/4/2011 they also furnished bifurcation of the undisclosed income. 11. From the perusal of records it is also found that in the case of firm M/s. Om Corporation returns were filed declaring income for various years as follows. Assessment was also completed by AO for all the three years in the case of firm by assessing the income declared. M/s. Om Corporation A.Y. 2009-10 2010-11 2011-12 Returned income Rs. 8,38,000/- Rs. 1,99,25,800/- Rs. 2.12.54,8207- Rs. 4,20,18,620/- Assessed Income Rs. 8,38,000/-Rs. 1,99,25,8007- Rs. 2,12,54,820/- AO has not brought any material on record which indicates that undisclosed income earned in the case of M/s. Om Corporation was utilised for making any other investment or was spent for any other purpose. In such a situation AO is not justified in rejecting the claim of appellant that amount invested in Gatrad land by appellant is application of the income of the firm.t As mentioned earlier, Shri Jagdish Savalia who is brother of appellant,....
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....suffered to tax and therefore the same cannot be made subject to tax in the hands of the assessee. The Ld. AR vehemently supported the order of the Ld. CIT(A). 11. We have heard the rival contentions of both the parties and perused the materials available on record. There is no ambiguity to the fact that the cash book belonging to the partnership firm was recovered from the possession of the assessee. Likewise, the cash book of the partnership was also written by the assessee himself. This fact can be verified from the submission made by the assessee which is reproduced as under: Your appellant has further to submit that all the financial transaction of himself and Om corporation are made and managed by him which is evident from the seized materials. Annexure A-1 Rojmel (cash book) of M/s.OM Corporation etc. Written by the appellant himself. Hence, your appellant had filed a reply dated 13.02.2013 which is reproduced as under: he copy of letter dated 13.02.2013 is enclosed as per Annexure-3. 11.1 The above submission of the assessee was admitted by the Ld. CIT(A), and Ld. DR has not brought anything contrary to the same. Besides the above, it is also seen that the br....
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....edings found that there was cash found of Rs. 5.20 lacs as on the date of search, the source of which was explained by the assessee out of the agriculture. The assessee has also submitted the agriculture bills in support of his claim. However, the AO found that the agriculture bills were not pertaining to the period in dispute and therefore he treated the same as undisclosed income of the assessee. 14. On appeal, the Ld. CIT(A) also confirmed the order of the AO by observing as under: Appellant had made only a general claim that sum of Rs. 5,20,000/- represents his agricultural income. However, no evidence in support of this claim has been filed either before AO of the undersigned. Certain bills for sale of agricultural products were filed before AO, but as mentioned by the AO in the assessment order, they pertain to the subsequent period. I therefore, hold that appellant has failed to satisfactorily explain source of cash of Rs. 5,20,351/- Addition of Rs. 5,20,351/- is justified in such a situation and the same is confirmed. Ground no. 1 of the appeal is thus dismissed. 15. Being aggrieved by the order of the Ld. CIT(A), the assessee is in appeal before us. 16. T....