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2013 (5) TMI 301 - AT - Income TaxLower rate of profit shown on sale of plots in the return of income - survey under sec. 133A - rejection of books of accounts - Held that:- As the assessee voluntarily offered during the course of survey income at Rs. 1853 per sq. yard which was reduced to Rs. 757 per sq. yard later. The reasons explained by the assessee are not satisfactory as merely because certain expenditures were not booked on earlier occasion and have to accounted on accrual basis, there cannot be fluctuation of profit from Rs. 1853 to Rs. 757 per sq. yard. The gap between Rs. 1853 and Rs. 757 per sq. yard is Rs. 1096 which is very abnormal which could not be explained by the assessee properly. As concerned with the correct expenditure relating to the assessment year under consideration expenditure cannot be changed in such an abnormal manner. Change in the profit rate per sq. yard from Rs. 1853 to Rs.757 per sq. yard clearly suggests that the assessee has tried to manipulate the accounts by inflating the expenditure and submitted that certain expenditures were left out while admitting the profit at Rs. 1853 per sq. yard. Facts brought on record show that the assessee is not keeping books of account to show correct income. In such circumstances, the lower authorities have no alternative to stick to the income declared by the assessee. The Supreme Court in the case of Pooranmal vs. DIT(E) (1973 (12) TMI 2 - SUPREME Court) held that material obtained in search made in contravention of the provisions can be used for assessment. Being so, the Assessing Officer can use the material collected during the course of survey for making assessment. Also as decided in Dr. Pratap Singh vs. Director of Investigation (1985 (4) TMI 1 - SUPREME Court) illegality of search does not vitiate the evidence collected during such illegal search. In view of this the material collected during the course of survey can be used for the purpose of assessment - assessee appeal is dismissed.
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