In the course of assessment proceedings, the AO based on the seized documents and sworn statement of the director of the assessee, made an addition of RS. 6. 30 crores as unexplained expenditure under S. 69C of the Act. The CIT (A) directed the AO to delete the addition. On appeal held, that the AO had already made addition in the hands of the assessee and the same payments to land owners could not be made as addition in the case of the assessee on protective basis. The findings of the CIT(A) is held to be justified. (AY. 2007-08, 2008-09 )
Dy. CIT v. Janapriya Engineers Syndicate Ltd. (2019) 70 ITR 370 (Hyd.)(Trib.)
S. 69C : Unexplained expenditure-Purchase of land-Addition of same payments made in hands of landowners-Addition on protective basis not sustainable. [S. 143(3)]