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2002 (10) TMI 50 - KERALA HIGH COURTConstruction of a commercial building - Income From Undisclosed Sources - In view of the fact that all the expenditure incurred by the assessee and recorded in the books of account are not supported by bills or vouchers, the assessing authority cannot be found fault with for not accepting the accounts. When the accounts maintained by the appellant could not be accepted, certainly, the assessing authority has to determine the cost of construction of the building to find out as to whether any expenditure has been incurred from unaccounted sources. – Tribunal had adverted to the remand report which showed that all the expenses recorded in the books of account are not supported by vouchers and bills and upheld the rejection of the accounts of the appellant. When the accounts are rejected, the assessing authority has to estimate the cost of construction for which he has to refer the matter to the Departmental Valuer. Hence, the authority cannot be found fault with for referring the matter to the valuation cell and in relying on the report submitted by the valuation cell. In fact, the first appellate authority took note of the various circumstances and granted substantial relief to the appellant. The Tribunal had sustained the same.
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