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2016 (2) TMI 833 - HC - Income TaxSuppression of cost of construction - amount invested by the appellant outside its books - Held that:- It clearly emerges that the disclosed cost of construction of ₹ 191.85 lacs was inclusive of ₹ 39.20 lacs of disclosure made by the assessee during the search. The Assessing Officer as well as the Tribunal at multiple places have referred to this figure inclusive of the disclosure by the Director of the assessee-Company. That being the position the Assessing Officer compared the fair value of construction cost, the expenditure disclosed by the assessee in the books of accounts which was added by a sum of ₹ 39.20 lacs admitted and disclosed by assessee during search. If this be so, the difference between two figures, namely, ₹ 40.28 lacs was justifiably added by the Assessing Officer by way of undisclosed income. Had the said figure of ₹ 191.85 lacs of cost of construction not accounted for the disclosed sum of ₹ 39.20 lacs during search, the counsel for assessee would have been justified in arguing that further addition of ₹ 40.28 lacs by way of estimation of cost of construction would amount to double taxation. That is not the case here. Appellant, however, raised an additional contention that the Assessing Officer could not have referred the cost of construction for his valuation. However, in the present appeal, we are not concerned with this controversy. The only question framed by the Court is with respect to addition of sum of ₹ 40.28 lacs when there is already a finding (in other words corresponding addition) of a sum of ₹ 39.20 lacs by way of investment by the assessee outside the books. - Decided against assessee
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