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2014 (2) TMI 1159 - ITAT DELHIAssessment u/s 158BD - whether belated initiation and completion of assessment was liable to be quashed? - Held that:- Dispute is about the fabrication charges not offered to tax amounting to ₹ 4,35,300/-. A period of six years from the end of the relevant assessment year ends on 31.3.2003. As against that, the notice u/s 158BD was issued on 1.9.2002. It shows that the date of such notice is well within the period of six years as prescribed u/s 149. In such a situation, it cannot be held that the initiation of proceedings u/s 158BD was time barred. - Decided against assessee. No satisfaction was recorded - Held that:- We are confronted with a situation in which Shri Ashish Soni availed the services from the assessee for which a consideration of ₹ 4,35,300/- was agreed upon. The said sum was not included by him in his expenditure, for which the Assessing Officer made addition u/s 69C as ‘Unexplained expenditure’. Such expenditure of Shri Ashish Soni was the income of the assessee, who failed to reflect this amount in her return. It shows that the income arising from being ledger of M/s Apoorve Apparels, is the income of the assessee and expenditure of M/s Aproove Apparels. Since, such expenditure was not recorded by Shri Ashish Soni in his books of account, it was to be considered as unexplained expenditure u/s 69C and simultaneously it was to be considered as the income of the assessee as it constituted a receipt in her hands. Thus, there is no question of recording satisfaction by the A.O of Shri Ashish Soni is relatable to the assessee in question alone and not Shri Ashish Soni. - Decided against assessee. Unexplained expenditure - Held that:- Once the Tribunal has held that Shri Ashish Soni incurred expenditure of ₹ 4,35,300/- and showed only a sum of ₹ 55,300/- in books, the natural corollary which follows is that the equal amount will have to be considered as receipt in the hands of the assessee. As only a sum of ₹ 55,300/- was recorded against the entry of ₹ 4,35,300/-, there was unexplained expenditure in the hands of Shri Ashish Soni and undisclosed income in the hands of the assessee to the tune of ₹ 3,80,000/-. We, therefore, hold that addition to the tune of ₹ 3,80,000/- requires confirmation. Contention of the ld. AR that the entire amount of ₹ 4,35,300/- cannot be included in the assessee’s total income and only profit margin therefrom should be added, is again devoid of any force. No material has been placed on record to demonstrate that the assessee did not account for certain expenditure in her books account for which she rendered job services to M/s Soni & Associates for a sum of ₹ 4,35,300/-. In such a case, it is gross receipt and not the profit element therein, which escaped taxation and is hence liable to tax. The impugned order is accordingly modified and the addition is sustained at ₹ 3,80,000/-. - Decided partly in favour of assessee.
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