Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (3) TMI 71 - AT - Income TaxSurrender of income during search u/s 132 of the Act - Addition made u/s 68 of the Act - Unexplained income - Whether the CIT(A) is justified in deleting the addition made by the AO on the basis of surrender made during the course of search – Held that:- CIT(A) has failed to consider the real issues and pecularities of surrender and book entries involved in the case - order of ld. CIT(A) cannot be sustained as there is no case of deleting the addition of ₹ 10 crores as if the effect is given to the CIT(A)'s order, then assessed income comes to a loss of ₹ 79,85,102/- as against income of ₹ 4,63,44,560/-. Even if the issue of percentage completion method is kept aside, there is absolutely no justification in the act of the assessee crediting an amount of ₹ 10 crores towards the surrender in its books of accounts - This is so because it is demonstratively apparent out of cash 'on money' of ₹ 9.41 crores appearing from seized papers an amount of ₹ 9.40 crors stands utilized leaving a meager balance of ₹ 60,350/- in hand as on 31-8-2007 - These figures are demonstratively mentioned by AO in his order - When assessee had only meager cash balance, it is not understandable as to how assessee can credit ₹ 10 crores in his books - Prima facie, there is no justification in the assessee's act of crediting an amount of ₹ 10 crores in its books of accounts - it may amount to income of the assessee as unexplained income in the absence of availability - the issues in question have not been properly considered by the CIT(A) – thus, the order set aside and the matter remitted back to the AO for fresh consideration – Decided in favour of Assessee.
|