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Commissioner of Income Tax, Delhi-2 Versus Crock Buildwel Pvt Ltd

2015 (3) TMI 845 - DELHI HIGH COURT

Unexplained investments - ITAT deleted the addition u/s 69 - Held that:- The CIT(A) appears to have taken into account the remand report. The assessee, in turn, appears to have relied upon letters written by the associate companies, each one of which had mentioned that the sums were paid directly to the asseseee’s vendor during the concerned period in the assessment year in question. The assessee’s case was that neither it nor the associate companies reflected these transactions in the books of .....

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e assessee in its returns) as well as the returns of the associate concerns. This, in our opinion, would have reflected the complete picture and either supported or falsified assessee’s contentions with respect to the inadvertence in omitting to make a mention of this investment at the relevant time in AY 2007-08. - Matter is remitted to the CIT(A) for specific finding on this question. It goes without saying that in the event of the CIT(A) being satisfied that these amounts were duly reflected .....

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nfirming the addition of ₹ 1,17,73,900/- was allowed. The question of law urged is whether the ITAT fell into error in holding that the said amount could not be added under Section 69 of the Income Tax Act, 1961 (hereafter referred to as the Act ). The relevant facts are that the assessee is engaged in the business of real estate, i.e. sale and purchase of properties. For AY 2007-08, it claimed to have incurred loss of ₹ 24,50,503/-. The return was selected for scrutiny and ultimatel .....

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e additions under two heads under Sections 68 and 69 of the Act are essentially the same, which amounted to double treatment, resulting in multiple taxation. Consequently, addition under Section 68 was deleted. However, the CIT(A) affirmed the AO s decision to bring to tax the sum of ₹ 1,17,73,900/- under Section 69. It is argued by the revenue that the ITAT fell into error in disturbing the concurrent finding of fact. Learned counsel highlighted that the assessee was unable to explain the .....

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evidently had taken into consideration the same while finalising his order. Neither the CIT(A) s order reflected nor had the ITAT applied its mind to this aspect of the matter. Learned counsel particularly emphasized that the response of M/s. Active Promoters Private Limited and M/s. Capex Projects Private Limited categorically pointed to no amounts being paid to or on account of the assessee, which warranted inclusion of the entire sum of ₹ 1,11,15,000/-. Learned counsel for the assessee, .....

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e of assessment proceedings and their letters were on the file of the AO, having been produced on 21.12.2009. Learned counsel submitted that the explanation with regard to inadvertence - or omission, in not reflecting these transactions in assessee s books was convincing, given that for AY 2009-10, all these transactions were reflected in its returns. Learned counsel relied upon this ground of appeal which appears to have been urged before the CIT(A) and even recorded in his order in para 5.1. T .....

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