Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2019 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (2) TMI 656 - HC - Income TaxUnexplained credit - Presumption of document recovered on search to be true and correct u/s 292C - Presumption as to assets, books of account, etc - Held that:- Section 292C speaks of a presumption insofar as books of accounts, other documents, money, bullion, jewellery or other valuable article or thing recovered in the course of a search under Section 132 or survey under Section 133A; as belonging to such person whose premises were searched and the contents of such books of accounts and other documents as being true. The initial burden necessarily has to be discharged by the department especially when the additions are proposed on one, other than the person whose premises were searched from where the documents were recovered. As to the addition made the assessee had no satisfactory explanation was the finding of the A.O. The fact that the amounts were paid to Sri. T.S.Asok by way of cheque was admitted by the assessee firm. The explanation was that it was refund of excess amounts paid by the said Asok. The A.O found that if the transaction was a legitimate one the credit and the debit would both be disclosed in the accounts. Here the payment alone was reflected in the accounts of the assesssee. The explanation offered by the assesssee as to the credit was not credible and hence disbelieved by the A.O. The first appellate authority rightly found that the cheque payment was a debit as seen from the accounts of the assessee and there was no reason to assume an unexplained credit. We perfectly agree with that and find no question of law arising therefrom. The first two questions of law has to be answered against the Revenue and in favour of the assessee. Insofar as the first appellate authority having not remanded the matter, on facts it is seen that the first appellate authority specifically called for a remand report from the AO; along with the documents produced by the assessee-firms before the first appellate authority. The AO even then did not carry out a proper enquiry. We, hence, find that the third question of law does not arise at all from the order of the Tribunal. Undisclosed income - balance consideration received from five purchasers of apartments in the assessee firm's project 'Cordial Tower' - corroborative evidence to find any additional sum having been received by the assessee firm - Held that:- We find Section 292C of the Act to be squarely applicable, since the document relied on was with respect to the assessee firm itself. The statement made by one of the purchasers, we find, is a self serving statement, which would not dispel the fact of receipt, of excess amounts, evidenced by documents recovered from the assessee's premise itself. On the specific transactions for which addition was made of ₹ 64,22,800/- and the documents relied on by the Department, we answer the question framed in favour of the Revenue and against the assessee. The order of the Tribunal, deleting ₹ 64,22,800/-, is set aside and the order of the Assessing Officer, making such addition, is restored.
|