AI Drafter 
TaxTMI 
TaxTMI 
2018 (3) TMI 2054
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....esent appeal, sought to set aside the impugned order dated 11.11.2013 passed by Ld. CIT(Appeals)-VI, New Delhi qua the assessment year 2008-09 on the grounds inter alia that :- "1. That on the facts and in the circumstances of the appellant's case, the learned Commissioner of Income tax (Appeals) erred both in fact and in law in confirming estimated addition of Rs 58,00,1001- out of Rs. 1,00,00,0001- in respect of undisclosed investment in paintings made by the assessing officer without appreciating the fact that the appellant has not made any undisclosed investment on such paintings as the same were received by him as gifts from the artists only. 2. That on the facts and in the circumstances of the appellant'....
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....ee and was one of the directors of M/s. Cue Apparel Private Limited and also partner of M/s. R & R Arts. A search and seizure operation was carried out at the business premises of M/s. R & R Arts on 17.04.2007 and consequently, the case was selected for regular assessment under section 143 (3) of the Income-tax Act, 1961 (for short 'the Act'). Assessee filed return of income for AY 2008-09 declaring his income at Rs. 18,40,524/- which was completed by the Assessing Officer at Rs. 1,44,62,994/- by making addition of Rs. 1,26,22,470/- (Rs.22,470/- + Rs. 1,00,00,000/- + Rs. 20,00,000/- + Rs. 6,00,000/-) on account of interest on saving bank accounts and undisclosed investment in paintings and income from undisclosed so....
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....Caur has been seized, as Annexure A-7 of the panchnama, found from the premises of the assessee. It is also not in dispute that in case of paintings stated to have been gifted by Manjit Bawa, it is mentioned that, "To Rohit and Rahul". It is also not in dispute that assessee filed confirmation from Bhavna Bawa, D/o Shri Manjit Bawa as Manjit Bawa remained in coma for three years after suffering a stroke prior to his death on 29.12.2008. 9. It is also not in dispute that the ld. CIT (A) has called for remand report during the appellate proceedings which was submitted vide letter dated 23.06.2011. Assessee stated to have not filed confirmation from Shibu Natesan and Jogen Choudhary on the ground that they were residing in Paris, France and....
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....ngs by the assessee to the tune of Rs. 1,00,00,000/- by the AO and restricted to Rs. 58,00,100/- by the ld. CIT (A) on estimate basis is sustainable?" 12. The ld. AR for the assessee challenging the estimation on exorbitant rate by AO/CIT (A) drew our attention towards bills for sale of paintings by Shibu Natesan for an amount of Rs. 4,01,200/- as against the estimation of Rs. 12,00,000/- made by the ld. CIT (A), bill issued by Manjit Bawa for sale of painting for Rs. 2,00,000/- as against estimation of Rs. 12,00,000/- made by the ld. CIT (A), bill issued by Jogen Chowdhary for Rs. 6,00,000/- in the same rate estimated by the ld. CIT (A), bill issued by Arpana Caur for Rs. 2,66,700/- for sale of pa....
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....is partly determined in favour of the assessee. GROUND NO. 1 OF ITA NO. 1130/DEL/2014 (REVENUE'S APPEAL) 15. So far as the question of deleting the addition of Rs. 6,00,000/- made by the AO is concerned, before ld. CIT (A), the assessee has proved the fact that he is meeting his household expenses out of salary to the tune of Rs. 8,40,000/- and Rs. 3,60,000/- from M/s. Cue Apparels Pvt. Ltd. and M/s. R & R Arts respectively and rental income of Rs. 10,50,000/-. Moreover, household expenses are being met by his mother, Smt. Shashi Gandhi who is earning member, out of drawings of Rs. 4,61,585/- from her proprietorship concern, M/s. R.S. Enterprises and has brought on record Schedule 12 to accounts attached formi....