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2021 (11) TMI 504 - HC - Income TaxUnexplained investments u/s 69- Tribunal deleted the addition - addition based on the extrapolated data - second round of litigation - HELD THAT:- As decided in Gowri Gopal Textile Processing [P.] Ltd.[2011 (9) TMI 325 - KARNATAKA HIGH COURT] while considering the computation of undisclosed income of the block period with reference to Section 158BB, has observed that in the absence of the word “Computation” defined under the Act, the meaning of the word has to be gathered from the scheme of the Act having regard to its ordinary grammatical meaning. The word “assessment” is the action of the Assessing Officer for determination of the amount of taxation, the scheme of charge or taxation. The term assessed being flexible, it bears very comprehensive meaning. Therefore, under Section 158BB of the Act, the Assessing Authority has to compute the undisclosed income falling within the block period, is not expected to assess the undisclosed income. Even in the event of undisclosed income, if the books are not available or the books are destroyed or there is suppression of actual sales, taking into consideration the totality of the circumstances, it is open to the Assessing Authority to estimate the income of the assessee. No reasons to differ from this dictum pronounced by the Co-ordinate Bench. The said ruling being squarely applicable to the facts of the present case, we answer the substantial question of law No.1 in favour of the assessee and against the Revenue. Addition of bogus expenditures - undisclosed payment of development charges to M/s. JAIC - Tribunal deleted the addition - HELD THAT:- To establish the factum that assessee said to have been incurred as expenditure towards the development charges, the assessee has placed the material evidence by producing necessary documents as per the profit and loss account of the assessee and profit and loss accounts of the JAIC with break-up figures which were made available before the Authorities as well as the Tribunal. The Tribunal having considered these factual aspects, has allowed the appeal of the assessee rejecting the Revenue’s appeal. These issues being related to pure questions of facts, no question of law much less the substantial question of law would arise for determination by this Court in exercising the powers under Section 260A of the Act. - Decided against revenue.
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