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2017 (12) TMI 1355 - HC - Income TaxAddition of commission - statement of the assessee was recorded under Section 132(4) - Held that:- First of all, in view of the provisions contained in Section 132 (4), the Revenue was entitled to complete assessment based on the assertions made by the assessee. In this case, in answer to question No.16 the assessee himself had stated that he was receiving commission at the rate of ₹ 1000/- to 2000/- per lakh. Thereafter in answer to question No.28 the assessee again stated that he was receiving approximately ₹ 1500/- per lakh. It was on the basis of the statement made by the assessee under Section 132(4) that the First Appellate Authority reduced the rate of commission to ₹ 1500/- per lakh. Such a fixation of commission cannot be said to be vitiated for any reason. Secondly, the Tribunal was also factually wrong in stating that the assessee himself had claimed in response to question No.16 that the commission he was getting was ₹ 1000/- per lakh. On the other hand, the answer given by the assessee himself would show that what he has stated was that he was getting commission at the rate of ₹ 1000/- to 2000/- per lakh. Therefore, the conclusion of the Tribunal is untenable and we therefore set aside the finding with respect to the rate of commission and restore the finding of the First Appellate Authority. Unexplained cash credit - Held that:- The facts found by the Tribunal itself show that the creditor of the assessee was one Aboobacker, Poothayil, a non-resident, who had a deposit in the Dhanalaxmi Bank, Muvattupuzha, against which he had availed a loan of ₹ 11 lakhs which was eventually transferred to the assessee. The facts being so, the assessee cannot be found to have failed in proving either the source of cash credit, the creditworthiness of the creditor or the genuineness of transactions. It was taking into account these three factors that the Tribunal has decided this issue in favour of the assessee. We have no reason to interfere with this finding of the Tribunal. Undisclosed investment in the construction of a building - rejections of books of accounts - Held that:- Thought the Revenue contended that having considered the provisions contained in Section 142A, inserted by the Finance Act, 2004, it was not necessary for the assessing officer to have rejected the books of account to obtain report of the Valuation Officer. However, we cannot accept the said contention for the reason that Section 142A was inserted with retrospective effect from 15.11.1972. Despite the insertion of such provision, the above judgments were rendered by the Apex Court and other High Courts holding that rejection of the books of accounts was necessary for obtaining the report. In that view of the matter, the Tribunal's finding on these issues also cannot be interfered with. Therefore, this appeal is disposed of answering the first question of law in favour of the Revenue
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