Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2018 (5) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (5) TMI 439 - HC - Income TaxGenuineness of the gift - Addition undisclosed income - assessee himself admitted in his statement before the Income Tax Authorities that he had paid money to buy these gifts - voluntary transfer of existing movable or immovable property made without consideration by the person called donor to another called the donee - regular/normal assessment in terms of sub-section (6) to Section 153 - Held that:- In the present case, Revenue would submit that papers and documents were found, which indicated that the assessee had not disclosed income from six benami concerns. Books of account would also include the pass-books or statement of bank accounts. It is in this context we would have to read and understand the questions and answers given by the respondent /assessee in his statements under Section 132(4). Oral statement was and should not be read in isolation, as respondent/assessee at the first and initial stage had accepted that the gift of ₹ 50,00,000/- was not genuine, and was a subterfuge. Oral evidence and documentary material was collected during the course of search regarding the undisclosed income. It is relevant that the respondent/assessee in his block return had declared undisclosed income, i.e. unaccounted income, to the tune of ₹ 86.82 lacs. In view of the aforesaid conflict and divergence, having recorded our prima facie reservation on the view expressed on "books of accounts" and more particularly on "oral statement " not being evidence found, we are inclined to refer the question of interpretation of the term “undisclosed income” for the purpose of block assessment to a larger bench to resolve and iron out differences and bestow and bring clarity. While examining the questions, the view expressed in Harjeev Aggarwal (2016 (3) TMI 329 - DELHI HIGH COURT) on whether a statement recorded under Section 132(4) cannot be treated as evidence found during the course of search could be considered and re-appraised. Larger bench could so examine the issue and question whether it would be appropriate and proper, when addition made in block assessment is deleted and knock down for "technical" grounds, for the Tribunal and Court to direct that the addition should have been made in regular/normal assessment in terms of sub-section (6) to Section 153 of the Act. The appeals would be accordingly placed before Hon’ble the Acting Chief Justice for being referred to a Larger Bench for deciding the issues and questions hereinbefore noticed. The questions of law can be thereafter answered by the Larger Bench or on the basis of opinion given and expressed by the Larger Bench, on the appeals being listed before the roster Bench.
|