INCOME TAX OFFICER Vs. MOTI LAL KHATRI
INCOME TAX APPELLATE TRIBUNAL
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U.T. Shah, Judicial Member -
(1.) THIS is a departmental appeal against the order of the AAC made under Section 154 of the Income-tax Act, 1961 ("the Act").
(2.) The assessee is an individual. The assessment year is 1977-78 and the relevant previous year is the financial year ended 31-3-1977.
While framing the assessment for the year under appeal, the ITO made an addition of Rs. 32,100 on account of unexplained investment in the construction of a house property. Against the said addition, the assessee preferred an appeal before the AAC on the following grounds :
i. That the learned ITO has erred in rejecting the return income of the assessee without considering the facts of the case.
ii. That the learned ITO is not justified in adding back Rs. 32,100 as unexplained investment in the house construction. The investment made in the house property by the assessee is fully proved and thus the addition made on this behalf is liable to be deleted.
(3.) THE AAC, in his appellate order dated 5-11-1980, was of the view that the correct addition on account of unexplained investment would be Rs. 23,110 and not Rs. 32,100 taken by the ITO. THEreafter, he gave relief of Rs. 3,000 on account of cost of construction of the boundary wall.;
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