COMMISSIONER OF INCOME TAX Vs. CH. NAGAR SINGH

JUDGEMENT

(1.) Both the aforesaid appeals, preferred under Section 260-A of the Income Tax Act, 1961 (hereinafter referred to as the Act), were admitted for hearing by this Court vide Order dated 31.03.2015 on the following substantial questions of law:

(2.) A search was conducted under Section 132 of the Act on 19.06.2007 in the office of the assessee and number of documents were seized from M/S Kisan Flour Mills in which assessee happened to be a partner. During the course of search an agreement to sale was found. The aforesaid agreement was executed for purchase of 37 Kanals of land at Jammu, for a consideration of Rs. 5.40 crores. However, in the sale deed, the sale consideration was mentioned as Rs. 3,72,72,000/-. The assessment was, therefore, framed under Sections 153A/143(3) on 25.03.2009 and the difference of Rs. 1,67,28,000/- was treated as unexplained investment by the assessee and the share of the assessee in the property in question was quantified at 40%. Accordingly an addition of Rs. 66,91,200/- was made to his returned income.

(3.) Being aggrieved, the assessee has filed an appeal before the Commissioner of Income Tax (Appeals). It was the case of the assessee before the Appellate Authority that the sale deed was executed in respect of only 29 Kanals and 18 Marlas of land as against 37 Kanals mentioned in the agreement. Before the Appellate Authority, copy of demarcation report was also filed. The Commissioner of Income Tax (Appeals) partly allowed the appeal of the assessee vide order dated 14.03.2013 and addition on account of unaccounted investment was restricted to Rs. 60.00 lakhs and the share of the assessee was worked out to Rs. 24.00 lakhs.