TaxTMI 
TaxTMI 
2025 (4) TMI 1959
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....terest income as per the seized documents. The summaries of additions are as under:- AY Original return of income Dated Returned income u/s.153A on 23.02.2022 Additions made Nature of additions Assessed income 2017-18 Not filed NA 531850 1800000 u/s.69 2430850 99000 Interest income u/s.56 2018-19 773170 31.08.2018 820170 1200000 u/s. 69 2185170 165000 interest income u/s.56 2019-20 451080 17.07.2019 676080 360000 interest income u/s.56 1036080 2020-21 1054160 09.01.2021 1054160 360000 interest income u/s.56 1414160 2021-22 906020 23.02.2022 NA 360000 interest income u/s.56 1266020 3. Aggrieved by the additions made, the assessee preferred appeals before the CIT(A). The assessee filed similar grounds of appeal for all AYs except for amounts involved. The addition on account of unaccounted investment is in AYs 2017-18 and 2018-19 and addition on interest income is common for all the years. 4. For AYs 2017-18 & 2018-19, the assessee has given lo....
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....e from other sources. It is acknowledgment by the appellant that his business activities and money lending activity to Mr. Seshadri is separate and are not mixed. In this situation, the appellant is not justified in claiming that interest income is already reflected in the business income reported in return of income. Further the appellant is claiming that he has reflected the real estate activity in HUF status, but in his submission to AO he has claimed that he is doing real estate activities both in individual and HUF status. Hence the submission of the appellant that he is doing real estate activities in HUF status only is rejected. 6.4.11: On illegal addition of unexplained investment, the following inferences are drawn: (a) The appellant was given proper opportunity to provide the source of loan advanced and is acknowledged by the appellant in his submission at para 7. The AO had also given show cause, regarding the same. The appellant is merely claiming that the source of Rs. 18 lakhs is savings from pension and hand loans but has not provided any evidences to substantiate the same. The pension is reflected in his bank account and his bank account and his pe....
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.... disclosed is not borne from records. Further the claim that he has disclosed the amounts in balance-sheet is an afterthought after the search of the appellant. The search took place on 18th March 2021 and he has claimed during search that he has not maintained books of account and hence this claim that he has disclosed investments in return of income is an afterthought and without any basis. Hence this submission is rejected. 6.4.12 : On illegal addition of interest income, the following are my observations and inferences:- (a) The appellant claims that he has already declared interest received from Mr. Seshadri in the returns of income and has offered additional income for AYs 2018-19 and 2019-20 in respect of the same. For other years, the appellant claims that he has declared the same under the head business income and offered to taxation. (b) As per the seized documents, the appellant had lent the loan at the rate of 1% of amount advanced and this point is not in dispute. Hence the appellant has to declare the interest at the rate of 1% in the return of income. (c) During the assessment proceedings, for the AY 2017-18 and 2018-19, t....
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....9,000 B 2018-19 67,000 C 2019-20 4,00,800 D 2020-21 4,95,000 E 2021-22 5,15,600 However, so as to buy peace with the Department, the assessee offered additional income, being interest received from Mr. Seshadri in his Return of Income filed in response to notice u/s.153A of the Act, details of which are as follows: S. No A.Y Additional income offered Rs. A 2018-19 87,000 B 2019-20 2,25,000 During the assessment proceedings, the AO did not take cognizance of the Returns of Income filed by the assessee in response to notice u/s. 153A of the Act. No notice u/s.143(2) of the Act was issued for any of the years. The AO directed the assessee to provide details of source for advancing loans of Rs 18,00,000/- and Rs 12,00,000/-. The assessee submitted that loan of Rs. 18,00,000/- was advanced in cash from his pension savings and hand loans from relatives and friends. The loan of Rs. 12,00,000/- was advanced to Mr. Seshadri via cheque bearing no.454169 from assessee's Syndicate Bank Alc. The source for the some was Rs. 12,60,000/- received from Mr.R.Muthukumaran on 16.08.2017 in the assessee's Syndicate Bank Account. 9.....