Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2022 (11) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (11) TMI 1211 - HC - Income TaxUndisclosed income - on-money - retracted statement - Addition based on seized material documents - as in respect of the lands purchased in bits and pieces, the cost of acquisition of land under different heads has been described which includes cost of land, brokerage, legal expenses, etc. - HELD THAT:- As assessment orders of the purchasers prima facie show that the purchasers had offered the income which they had earned by transferring the lands to the Company for formation of Golf Club and Villas and declared their capital gains and paid taxes. Though it is recorded by Assessing Officer that the order is passed without prejudice to the assessment proceedings of assessee herein, the orders are passed u/s143(3) which is a substantive assessment. Even if said orders are duly considered as 'without prejudice to the assessment proceedings' in respect of the assessee herein, we have noted that, there was no incriminating material seized, which could suggest that assessee had paid any 'on-money'. In substance AO has relied upon only two circumstances, firstly, the seized documents, which do not bear any signature, secondly, on the statement of the original owners, wherein the original owners have confirmed on oath the actual value of the land. One of the purchasers has stated on oath that a Police complaint was given against him and therefore, he had given statement before the Income Tax Authorities and subsequently retraced the same. In the circumstances, the assessment order passed based on seized material and the statements, which have been redressed, is perverse. We are of the considered view that AO had no material to hold that the assessee had paid any 'on-money'. Hence, order passed by the AO, CIT(A) and ITAT are not sustainable. Since the assessment order is not sustainable, it is needless to mention that the current proceedings are not tenable. Decided in favour of assessee.
|