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2013 (2) TMI 574 - HC - Income TaxAddition on the basis of presumption – AO made addition on the ground that there was on-money transaction in the sale of plots of lands developed by the assessee – AO based his reasoning on statements of witnesses and Site Engineer, indicating booking of plots at a higher rate than reflected in books – Held that:- During search, nothing was found which revealed that the assessee had ever received 'on money' on sale of plots - The disclosure was not on account of profits from such projects specifically - The persons whose statements are recorded have no locus standi to confirm as to what is the rate charged by the assessee - The persons whose statements were recorded have merely visited the site but has not actually transacted with the assessee - The Site Engineer is not empowered either book the plots or to quote the rate – Since these persons are not competent to admit any undisclosed income, their statements cannot be admitted in evidence for taking a view against the assessee - Merely on presumption no amount can be added as undisclosed turnover or profit thereon - Addition not sustainable – Against the revenue.
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