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2003 (1) TMI 85 - CALCUTTA HIGH COURTUnexplained Investment - According to counsel for the assessee, in this case there are materials to show that the explanation was satisfactory. Nowhere had the Income-tax Officer recorded his observation that either the books of account are not reliable or that he was not satisfied with the explanation given. Therefore, according to him, the books of account as produced were required to be accepted. - In fact the Assessing Officer has not rejected the books of account. He has not specifically observed that the books of account are not reliable. But he has pointed out that a sum of Rs. 2,68,986 was spent during the year for building construction. This was admitted by the representative of the assessee. The details of purchase, etc., were not produced before the Assessing Officer. Before the appellate authority, it was pointed out that the bills and other materials were available with the assessee. Admittedly, these are not reflected in the books of account. On the other hand, the representative of the assessee had admitted the spending of Rs. 2,68,986 whereas an amount of Rs. 8,31,225 was shown to have been spent in the books of account. Thus, when there is an admission that a further sum of Rs. 2,68,986 was spent apart from Rs. 8,31,225, then the cost of construction would come to Rs. 11,00,211 and odd. The Tribunal had accepted Rs. 10,67,638 as assessed by the valuer. Thus, the principle that has been raised by learned counsel for the assessee cannot be attracted in the facts and circumstances of the case.
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