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Income Tax Appellate Tribunal, AHMEDABAD “C” BENCH
Before: Shri Rajpal Yadav & Shri Amarjit Singh
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “C” BENCH Before: Shri Rajpal Yadav, Judicial Member And Shri Amarjit Singh, Accountant Member ITA No. 127/Ahd/2018 Assessment Year 2012-13
Manish Rameshwarprasad The ITO, Gour Ward-1(2)(4), PAN: AHFPG3049P Vs Baroda (Appellant) (Respondent)
Revenue by: Shri Lalit P. Jain, Sr. D.R. Assessee by: Shri Surendra Modiani, A.R.
Date of hearing : 18-10-2018 Date of pronouncement : 30-10-2018 आदेश/ORDER PER : AMARJIT SINGH, ACCOUNTANT MEMBER:-
This assessee’s appeal for A.Y. 2012-13, arises from order of the CIT(A)- 2, Baroda dated 25-10-2017, in proceedings under section 143(3) of the Income Tax Act, 1961; in short “the Act”.
The solitary ground of appeal filed the assessee is against the decision of Ld. CIT(A) in confirming the addition of Rs. 14,68,843/- as unexplained investment in purchase of land.
The brief fact of the case is that the assessee has filed return of income declaring total income of Rs. 3,78,380/- on 26th July, 2012. Subsequently, the case was selected under scrutiny by issuing of notice u/s. 143(2) of the act on 6th
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August, 2013. On the basis of AIR information received by the department, it was noticed that assessee along with five other persons have purchased the followed pieces of land. (i) Non-Agricultural Land-Block No.533, Area-8562 Sqr.Mtr. , Moje-Palaswada, Dabhoi, Distt-Baroda - Purchased for Rs. 30,01,548/-. (ii) Non-Agricultural Land Block No.534, Palti-1, Area-15191 Sqr. Mtr., Moje-Palaswada, Dabhoi, Distt-Baroda - Purchased for Rs.5325452/-.
On verification of the details, the assessee was asked to give source of investment in the aforesaid land. In this regard, the assessee has submitted that he has filed return of income u/s. 44AD of the act showing net profit at Rs. 6,07,356/- @12.5% and gross contract receipt of Rs. 48,22,850/-. The assessee also stated that he was a partner in the firm M/s. Shree Khodiyar Developers, Baroda in financial year 2001-12 and he had retired from the firm. Therefore, the assessee was asked to furnish the details of capital introduced in the firm at the time of joining, his share in the firm, receipt from the firm at the time of leaving the firm etc. The assessee was also asked to produce material evidence that purchase of land had been accounted for in the partnership firm. The assessing officer has stated that assessee has not submitted the percentage of his share in the partnership firm and the firm has also not submitted its return of income for any assessment year including the year under consideration. No material evidence has been submitted by the firm or the partner regarding source of investment in the purchase of the land.. It is also noticed that partnership firm has not submitted its return of income for the year under consideration. Consequently the assessing officer has treated the investment in the purchase of the land as unexplained and 1/6 share of the assessee from the total investment of Rs. 8813060/- which comes to Rs. 14,68,843/- was treated as unexplained income of the assessee.
Aggrieved assessee has filed appeal before the ld. CIT(A). The ld. CIT(A) has dismissed the appeal of the assessee. The relevant part of the decision of the ld. CIT(A) is reproduced as under:-
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“3. In order to decide the appellate proceedings, the appeal of the assessee has been fixed on various occasions as Sr. No. Date of Notice Date of Compliance 1 21.11.16 29.11.16 2 30.11.16 07.12.16 3 06.12.16 26.12.16 4. 30.03.17 12.04.17 5 13.04.17 27.04.17 6 29.08.17 06.09.17 7 29.09.17 13.10.17
However, neither anybody attended nor furnished any written explanation. No adjudication application has also been filed. It is also worthwhile to mention, that Shri Surendra Modiani, CA, whose Letter of Authority is enclosed with the Appeal Memo was also contacted by this office and he informed that this appeal is no more handled by him. On the notice dated 13.04.2017, fixing the date of compliance on 27.04.2017, "Final Opportunity" was marked. Thus, it .is clear that despite, having been provided various opportunities, the appellant has not made any compliance. Thus it appears that the appellant is not interested in pursuing his appealand • hence the same is being decided on the basis of material available on record. 4. I have carefully considered the facts on record. All the grounds of appeal raised are pertaining to addition of Rs. 14,68,843/-. Undisputedly, the appellant has purchased two immovable properties worth Rs.88,13,060/-claimed to be on behalf of firm. Since no return of income has been filed by the firm, the investment in the property certainly belongs to the Partners. It is also worthwhile to mention that Sale Deeds are registered in the name of appellant claimed to be on behalf of firm. Accordingly, the AO has assessed l/6th of the total investment being the share of appellant as unexplained investment in this case. The findings of the AO have not been controverted by the appellant and hence the addition made at Rs. 14,68,843/- is confirmed. Needless to mention, the AO shall ensure assessment of unexplained investment in the hands of other Partners of the firm. Thus all the grounds of appeal are dismissed.”
We have heard both the sides and perused the material on record carefully. It is noticed that assessee along with other five persons had made investment by purchasing the pieces of land as mentioned supra in this order. During the course of assessment proceedings, the assessee has claimed that this investment in the land was accounted in the partnership firm. During the course of assessment proceedings, the assessee was given ample opportunities
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to explain the source of investment in the purchase of such land. However, the assessee has failed to furnish any relevant supporting evidence which demonstrates that investment in the land was made by the partnership firm. Even it was also noticed that partnership firm has not filed any return of income. After considering the above facts and detailed findings of ld. CIT(A), we do not find any merit in the appeal of the assessee ,therefore, the appeal of the assessee is dismissed.
In the result, the appeal of the assessee is dismissed.
Order pronounced in the open court on 30-10-2018
Sd/- Sd/- (RAJPAL YADAV) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad : Dated 30/10/2018 आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद