2012 (6) TMI 657 - HC - Income Tax

Suppression of sale proceeds and estimation of undisclosed income - sale consideration as per the sale deed did not tally with the actual payments made by the purchasers - assessee's contention that the receipt of on-money should be held in the name of two partners and not against the firm - additional ground of assessee that the expenditure incurred was not considered by the Revenue - Held that:- The provisions Chapter XIV-B, i.e. limit the inquiry by the Assessing Officer to those materials found during the search and seizure operation are not applicable to proceedings under Sections 153A/153C mentioning that the AO can take into consideration material other than what was available during the search and seizure operation for making an assessment of the undisclosed income of the assessee - Consequently, the principles of Section 158BB of the Act cannot be imported for the purposes of interpreting Section 153A/153C - as the interpretation of Sections 153A/153C of the Act is quite clear, no substantial question of law arises for consideration.

no evidence before the AO to conclude that on-money was received by Ahura Holdings (firm) in respect of all the sale transactions - Held that:- There was adequate material before the Assessing Officer in the form of eight sale deeds and in the form of replies given by assessee to questions posed to him with regard to receipt of on-money to enable AO to come to an informed conclusion in this regard. Appreciation of the available material is within the domain of the Assessing Officer and this does not lead to any substantial question of law, unless the conclusions arrived at are perverse - CIT (Appeals) agreed with the assessee that disallowance on the cost of land was not justified and as regards legal fees and some development expenses etc., the AO was directed to have a fresh look into the matterNo substantial question of law arises nor there is any occasion to interfere with the view taken concurrently by all the authorities - against assessee.