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2016 (11) TMI 1025 - HC - Income TaxAddition on account of surrender during the survey under section 133A - Held that:- AO found that the pre-survey and post-survey profit and loss account of the assessee showed for the period 01.04.2006 to 07.09.2006 a net profit of ₹ 83,47,719/- and for the latter period i.e. from 08.09.2006 to 31.03.2007 net profit of ₹ 77.75 lacs which included an amount of ₹ 67 lacs as income surrendered during the survey. On this basis, it was found that the net profit for the post-survey period itself was about ₹ 10,75,832/-. Accordingly, this amount was added to the surrendered income of ₹ 1,60,00,000/-. The Tribunal confirmed the Assessing Officer’s view that by preparing the profit and loss account in a particular manner, the assessee had attempted to circumvent the undertaking given in the said letter. The Tribunal also agreed that there was voluminous incriminating material found during the survey and by surrendering the said amount, the assessee had the benefit of having the further enquiry shut. The view taken by the Assessing Officer and the Tribunal cannot be said to be perverse. The amount of ₹ 1,60,00,000/- had been surrendered for the first half of the year. The assessee itself showed a profit of the said amount of ₹ 10.76 lacs and therefore added the same to the surrendered amount of ₹ 1,60,00,000/-. It is to say the least a possible approach to the matter. Addition on account of unsecured loans under section 68 - Held that:- The income of all the creditors was below the taxable limit. All of them had their accounts with the Punjab National Bank, Dhuri Branch. We will overlook the fact that the affidavits filed by them are identical. The Tribunal analyzed all the cases individually. For instance, in respect of one of the creditors, namely, Ms. Ranjit Kaur, it was found that she earned a professional income. She opened her account on 18.08.2006 with a sum of ₹ 1500/- and then deposited a sum of ₹ 3,00,000/- in cash on 23.08.2006 and issued a cheque of the same amount on the same day i.e. 23.08.2006. As observed by the Tribunal, if she was a professional, there was no explanation why she had not opened her own account earlier. Moreover, her income was stated to be only ₹ 82,000/- per annum. There was no explanation as to how she had suddenly obtained ₹ 3,00,000/-. In this manner, the Tribunal also analyzed the case of the other alleged lenders.
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