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2015 (3) TMI 275 - HC - Income TaxUndisclosed income - interpretation of Section 158B, 158-BA and 158-BB - Tribunal held that the sum of ₹ 69,298/-was to be assessed under Chapter XI-VB of the Act as undisclosed income of the assessee - whether maximum nontaxable limit of income for each year is not to be included in undisclosed income? - Held that:- In the present facts, in view of the law as prevailing prior to the retrospective amendment of 2002 w.e.f. 1995, none of the authorities determined the issue whether the amount of ₹ 69,298/- was arrived at on the basis of entries in the books of account and other documents maintained by the appellant before the search. Therefore though the retrospective amendment to Section 158BB of the Act by the Finance Act, 2002 would be applicable in case of the appellant, the benefit of the same would be available only on the appellant satisfying the authorities that the amount of ₹ 69,298/- is duly supported by entries in books of account or such other memorandum. This exercise could be carried out by the Assessing Officer while giving effect to this order. It is only on satisfaction of the aforesaid condition precedent would the benefit of ₹ 69,298/- be extended to the appellant resulting in reduction of total undisclosed income to the above extent. - Decided in favour of assessee for statistical purposes. Undisclosed jewelery - Unexplained investment under Section 69 - Held that:- Explanation offered by the respondentassessee to her possession of jewelery of ₹ 6.57 Lakhs was that the same was gifted to her on occasion of her marriage by her father and fatherinlaw. This explanation was not contested by the father and fatherinlaw. The authorities accepted the source of the jewelery in her possession. However, the Tribunal was not satisfied with the evidence produced by her father and father-in-law. This cannot be lead to be conclusion that the explanation offered by the respondent-assessee in respect of the jewelery in her possession is not satisfactory. In the normal course of human conduct, on occasions such as marriage the parents and parents-in-law of a bride do normally gift jewelery to the bride. On occasion such as this, it is not possible to expect the bride to ask for evidence of bills/invoices to support the purchase of the jewelery. One has to proceed on the basis that it is genuine. Thus her explanation that she received the jewelery as gifts from her father and father-in-law is sufficient explanation of the jewelery in her possession and the gifts are not denied by her father and father-in-law. Thus invocation of Section 69 of the Act is these facts is completely unwarranted. - Decided in favour of assessee
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