Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (9) TMI 812 - AT - Income TaxReopening of assessment u/s 147 - reasons recorded after the expiry of 4 years from the end of the assessment year - HELD THAT:- In the present case the central bureau of investigation has made the detailed enquiry and found that the financing of the appellant to the extent stated in the reasons recorded are not what is disclosed by the assessee but a camouflage transaction. It is also interesting to note in the para number 16 of the order of the honourable High Court where in it relied upon the decision of CIT vs Multiplex trading and industrial company limited [2015 (10) TMI 23 - DELHI HIGH COURT] and stated that where in cases where the primary facts as asserted by the assessee for framing of assessment are subsequently discovered as false, the reopening of assessment may be justified. In the present case, the primary facts stated by the assessee in the original assessment proceedings are found to be false. In the present case the assessing officer has received a specific information about the huge cash deposit in the bank account of the assessee and through Mr SK Sharma and backed by the statement of the donors, statement of the chartered accountant, statement of the entry operator et cetera, reasons are recorded. Unexplained income in treating the donation is bogus donation - HELD THAT:- Apparently if the trusts has credited alleged donation to the income and expenditure account, provisions of section 68 cannot be applied. Therefore in such cases from 1-4-2007 u/s 15 BBC the provisions of anonymous donation and its taxability at a different rate applies. However if the donation is not credited to the income and expenditure account on provisions of section 68 are rightly applied by the lower authorities. We confirm the actions of lower authorities in taxing the sum of INR 4,000,000 as unexplained income being bogus donation credited to the general fund in the balance sheet. In the result ground number 2 of the appeal is dismissed.
|