TaxTMI 
TaxTMI 
2023 (9) TMI 1512
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....Chny/2020 & 146/Chny/2020. This appeal arises out of impugned order passed by learned Commissioner of Income Tax (Appeals)-19, Chennai [CIT(A)] on 27-09-2019 in the matter of an assessment framed by learned Assessing Officer (AO) u/s 144 r.w.s. 254 of the Act on 30-12-2016. The elaborate facts of the case and the circumstances in which the assessee had acquired certain parcels of land in AY 2006-07 and sold the same in AY 2007-08 have already been enumerated by us in our order for those years. In the present appeal, the assessee is aggrieved by confirmation of certain additions. 2. The Registry has noted delay of 35 days in the appeal, the condonation of which has been sought by Ld. AR on the strength of an affidavit of the assessee. It ....
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....me was taken into consideration while framing the assessment. 4.3 The additions made by Ld. AO were as under: - (i) Cash found at the time of search At the time of search, cash of Rs. 6.90 Lacs was seized. During assessment proceedings, the assessee submitted that the cash was sourced from sale of agricultural land during FY 2006-07. However, rejecting the same, the cash was treated as unexplained money u/s 69A. (ii) Jewellery found at the time of search During search, jewellery weighing about 1390 grams of gold was found and the same was valued at Rs. 1000/- per gram. The assessee submitted that the jewellery was purchased from income derived from agricultural activity and through professional income of astrology. However, i....
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....ver, it was noted that this property was purchased by PS out of funds provided by the assessee and his family. The bank account of PS was opened on 10-01-2007 and amount of Rs. 30 Lacs was received from PNB. Thereafter, he issued a Cheuqe to assessee on 23.05.2007. Shri PS was stated to be man of meagre means. The assessee was directed to furnish the purchase deed of the property along with sources of funds. However, in the absence of any explanation forthcoming from the assessee, in this regard, it was held by Ld. AO that the said land was purchased out of undisclosed sources and accordingly, the amount of Rs. 49.80 Lacs was brought to tax u/s 69. (vii) Agricultural income The assessee claimed to have received net agricultural income....
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....quisition and cost of improvement. The purchase of property at Muthukad was stated to be sourced out of Housing Loan and sale proceeds of agricultural land. The assessee also submitted that as against stamp duty value of Rs. 49.80 Lacs, the property was purchased at Rs.35 Lacs since there was poor road facilities in accessing the land and due to recession in the real estate market prices. The agricultural income of Rs.1.65 Lacs was stated to be out of sale of produce from Land at Sengalipalayam. The source of deposit of Rs.90.97 Lacs was stated to be out of sale consideration as received during the AY 2007-08. The assessee also assailed the addition of unexplained expenditure of Rs .4.48 Lacs. 5.2 However, not convinced, Ld. CIT(A) confi....
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....onal Income The assessee has already been granted adequate relief in the impugned order. (iv) Rental Income We are of the opinion that estimation of higher rental income is without any basis. It is not the case of Ld. AO that the rental income was less than municipal rateable value. The Ld. CIT(A) has already deleted this addition. (v) Capital Gain The Ld. AR has drawn attention to the copy of purchase deed and encumbrance certificate towards the cost of acquisition. The Ld. AR also submitted that the property was in joint ownership of assessee and his wife and therefore, entire addition could not be made in the hands of the assessee. Considering the same, this issue stand restored back to the file of Ld. AO for de novo adjud....
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....e fact that the assessee was holding agricultural land and considering the quantum of income, we are of the opinion that this income could not be considered as income from undisclosed sources. Therefore, we direct Ld. AO to accept the same as agricultural income of the assessee. The corresponding grounds stand allowed to that extent. (viii) Undisclosed Bank Accounts The Ld. AR has submitted that peak balances have wrongly been worked out by Ld. AO. The Ld. AR further submitted that peak credit pertains to carry forward balances of AY 2007-08 and their source is attributable to consideration from sale of agricultural land during AY 2007-08. The Ld. AR also averred that the provisions u/s 68 could not be invoked for credit made in the b....