TaxTMI 
TaxTMI 
2025 (7) TMI 115
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....f the Act was conducted on the assessee on 14.03.2018. During the course of such survey, books of accounts were impounded. During the course of such survey, partner of the assessee firm, Sh. Pawan Agarwala, admitted that certain investments were made in the post office which were not disclosed in the books of account amounting to Rs. 7,20,000/- and he also admitted that an undisclosed amount of Rs. 15,00,000/- was spent on interior decoration of show room. Thus, a sum total of Rs. 22,20,000/- was disclosed as unaccounted expenditure and unaccounted investment by the assessee. Thereafter, the Ld. AO added Rs. 7,20,000/- u/s 69 of the Act and added Rs. 15,00,000/- u/s 69C of the Act. Thereafter, he levied tax u/s 115BBE of the Act. 1.2 Agg....
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.... during the year by the appellant/partners, along with documentary evidence. 7. Ledger extracts from the Books of account highlighting the entries pertaining to undisclosed income. 8. If you are relying on the submissions furnished before the AO, copy of the same set may be submitted in this office. The appellant replied vide letter dated 10/02/2024 that the undersigned has to rely on the earlier submissions. The details called for in the questionnaire have not yet been furnished. The appellant does not intend to submit the details called for, since such details would further strengthen the observations made in the assessment order. It means that the appellant has nothing further to say in this matter. 6.....
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....ners were not submitted. The ledger extracts from Books of account were also not furnished. It can be inferred that the Appellant has nothing further to say in this matter. The appellant does not intend to submit the details called for, since such details would further strengthen the observations made in the assessment order. It is clear that the appellant is trying to suppress the facts of its own case while relying on the facts of other cases in the judicial pronouncements. 6.5.4. In such circumstances, it can be concluded that the appellant could not substantiate its claims. Thus, the undisclosed investments in post office are deemed to be Unexplained investment and deemed income within the meaning of provisions of Section 69 of....
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....nd circumstances of the case, the Id. CIT(A) ought to have hold that the Id. AO without bringing on record any material to show that any actual Investment of Rs. 7,20,000/-was made by the appellant firm during the year under consideration, was not justified in arbitrarily assessing the same by invoking provisions of section 69 of the Act. 6. For that the Id. CIT(A) ought to have hold that the impugned order of assessment having been passed by the Id. AO without providing a copy of draft assessment order to the appellant and without allowing the proper opportunity of hearing to the appellant, the same is bad in law and is liable to be quashed. 7. Por that the Id. CIT(A) ought to have hold that the order of assessment has be....
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....ubjected to additions u/s 69 or 69C of the Act. 2.1 The Ld. DR supported the orders of the authorities below and stated that there is a clear-cut finding in the order of Ld. CIT(A) regarding the year of taxability of Rs. 15,00,000/- and also regarding the taxability in the hands of the assessee for the amount of Rs. 7,20,000/-. 3. We have carefully considered the rival submissions and also gone through the order of authorities below. Regarding Ground Nos. 1 to 3 where the assumption of jurisdiction has been challenged, it needs to be mentioned that notice u/s 143(2) of the Act was served on the assessee and the same has been recorded in the first paragraph on page 2 of the Ld. AO's order. Thereafter, it is seen that the assessee has p....