Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (7) TMI 842 - AT - Income TaxUndisclosed income - Block assessment - CIT(A) deleted the addition - Held that:- If the assessee proves that the alleged income is duly recorded on or before the date of search in the normal course in the books of account in respect of an assessment year for which the previous year has not ended then such income is not required to be included in the block period. In the present appeal the case of the Revenue was not that the assessee's personal books of account were seized at the time of search and in those set of books of account there was no entry of deposit of Rs.24,00,000/- on three different dates. The correct factual position was that no search action at all was carried out on the assessee. The assessee was directed to file the return of the block period consequence upon a search conducted on developer, viz., M/s. Vrindavan Developers. In that case of M/s. Vrindavan Developers a search was carried on 21.12.1999 and thereupon it was noted that a land was agreed to be sold by the assessee and in lieu received an advance consideration of Rs.24,00,000/-. That was the start point of action against the assessee. At that point when there was an apprehension of alleged unaccounted transaction in the eyes of Revenue Department then further investigation could have been done then and there. If the Revenue Department had failed to take appropriate measures then the assessee is at liberty to take the legal advantage of those fallacies. Certain measures were taken by the assessee, such as, deposit of advance-tax, entries in the personal set of books of accounts, fixed deposit in the bank, filing of the Income Tax Return and disclosure of capital gain pertaining to the said land, therefore assessee had wisely taken the legal advantage of the provision of the Act, especially when the Revenue had faulted in not taking a timely action. Therefore, in the absence of any cogent material this ground of the Revenue is hereby dismissed.
|