Additions made by AO held justified as revenue could not controvert findings.
Additions made by AO held justified as revenue could not controvert findings.
"In scrutiny assessment, AO made additions on account of undisclosed interest & unexplained investment in immovable properties. On appeal CIT(A) deleted additions. On appeal ITAT held, AO had made addition on basis that no evidence was furnished in respect of investment in immovable properties. As finding of CIT(A) is not controverted by Revenue by placing any contrary-material on record. Thus, AO held not justified in making addition."-501152
Facts in Brief:
1. Assessee was picked up for scrutiny assessment and the assessment u/s.143(3) (of Income Tax Act, 1961).
2. While framing the assessment, the Assessing Officer made addition of Rs.1,12,000/- on account of undisclosed interest income and Rs.82,69,000/- as unexplained investment in immovable properties.
3. The assessee being aggrieved by the assessment order, preferred an appeal before the ld.CIT(A), who after considering the submissions of the assessee allowed the appeal and directed the AO to delete the additions.
On appeal ITAT held,
4. The AO had made the addition on the basis that no evidence was furnished in respect of investment in immovable properties.
5. However, the contention of the assessee was that the investment was made in the capacity of Authorized Representative, i.e. being Director of the companies.
6. The finding of CIT(A) is not controverted by the Revenue by placing any contrary-material on record.
7. Therefore, we are of the considered view that the AO was not justified in making the addition.
8. Hence, we find no reason to interfere with the order of the ld.CIT(A), same is hereby upheld and ground raised in the Revenue's appeal is dismissed.
Case Reference - Vijay Jagdish Chheda, Valsad vs Department Of Income Tax.
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