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2008 (8) TMI 918 - RAJASTHAN HIGH COURTUndisclosed investment u/s 69 - enhanced GP rate - excess stock found during survey - rejection of books of account u/s 145 - deduction u/s 80IA - additions made in the income from the undisclosed sources - considered as income of the business - eligibility for deduction u/s. 80IA? HELD THAT:- From Persual of provisions of s. 69, it is clear that the basic condition, for attracting the provisions of s. 69 is, that the investments made in the financial year concerned, should not be recorded in the books of account, maintained by the assessee, for any source of income, and secondly, the assessee should have not offered any explanation, about the nature and sources of investments, or the explanation offered should not be satisfactory, in the opinion of the AO. In the present case, the relevant financial year is 1999-2000, and in the books of accounts of that year, this stock has been duly accounted for, and after so accounting for the same, the figure of sales has been accepted by the Department, and enhanced GP rate has been applied thereto. In that view of the matter, it cannot be said, that an investment has been made, which was not recorded in the books of account. Thus, in our view, the provisions of s. 69 cannot be said to be attracted to the price of stock in question. Though, not necessary, but still it may be considered and observed, that during the relevant year, the entire income of the assessee was exempted u/s 80-IA, and thus there was, possibly no reason, for the assessee to conceal the stock-in-trade, as thereby, the assessee was not to gain anything. The net result is that, we do not find any force in the appeal, and the same is therefore, dismissed.
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