Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (6) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (6) TMI 260 - HC - Income TaxExplanation of the source of investment - Whether the Tribunal was legally correct in holding that the building belonged to M/s. Hotel Ganges Ltd. and it was also responsible to explain the source of investment in its construction – Held that:- The expenses for construction were being managed by the assessee by borrowing the funds from the Hindu undivided family - expenses made by the assessee have been adopted by the company to which there can be no dispute - The Commissioner has found that the company has not even obtained the certificate of commencement of business up to January 2, 1976, and up to March 31, 1976, the company had no source of income which is a finding of fact. This is a case of assessment of unaccounted investment - The investment was done by the assessee - The Company had no income at the time when the expenditure towards construction was undertaken – thus, there is no occasion to assess the unaccounted investment at the hands of the company – CIT(A) has rightly appreciated the facts and recorded a finding that there being no income of the company at the relevant period when unaccounted investment was made, the same has to be assessed in the hands of the assessee - He has rightly affirmed the order of the Income-tax Officer assessing the unaccounted investment at the hands of the assessee – Decided in favour of Revenue.
|