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2015 (10) TMI 2169 - ITAT AHMEDABAD

2015 (10) TMI 2169 - ITAT AHMEDABAD - TMI - Undisclosed investment - accrual of income - Held that:- In respect of amount related to VFS (India) Pvt. Ltd., the assessee has placed on record a certificate from VFS (India) Pvt. Ltd. that no amount was paid to the assessee after 1st April, 2004. However, Assessing Officer has not made enquiry from concerned VFS (India) Pvt. Ltd. and proceeded to make addition on assumption basis. In our considered view, the Assessing Officer ought to have verified .....

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in this respect, we hereby direct the Assessing Officer to delete the amount for VFS (India) Pvt. Ltd.

In respect of Kuoni Travels (India) Pvt. Ltd., it cannot be inferred that no service was provided post 1st April, 2004. As it is clearly mentioned in the cancellation agreement that the service provider was rendering services till 14.10.2005 and the payments for the services rendered till 14.10.2005 was made on 1st April, 2004. The assessee has not placed any confirmation from the co .....

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that the Assessing Officer had made no effort to find out whether the particular property was vacant, during year under consideration. Under these facts, we do not see any reason to sustain the finding of authorities below. Hence, the Assessing Officer is directed to delete the addition made on account of presumed income received from M/s. Prabhat Automation - Decided partly in favour of assessee. - ITA No. 827/Ahd/2009 - Dated:- 24-9-2015 - ShriKul Bharat, Judicial Member and Shri Manish Borad, .....

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le by the Appellant. 1) Kuoni Travels (India) Pvt. Ltd. - Rs.4,80,000 2) a)VFSIndiaPvt.Ltd. Rs.8,64,000 b) VFS India Pvt. Ltd. - Rs.3,19,368 c) VFS India Pvt. Ltd. - Rs.6,63,870 (Out of addition made of ₹ 796644) - 3) Prabhat Automation - ₹ 58,500 2. The Learned CIT (Appeals) erred in holding that the appellant was entitled to receive these incomes and further erred in confirming the addition of ₹ 23,85,738/-. 3. The Learned CIT (Appeals) erred in disregarding the evidences / c .....

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,32,404/- treating the same as undisclosed income. 3. The assessee aggrieved by this assessment order preferred the appeal before the ld. CIT(A) who after considering the submissions partly allowed the appeal thereby the ld. CIT(A) sustained the addition to the extent of ₹ 23,85,738/- out of addition of ₹ 32,32,404/-. 4. The only effective ground is against confirmation of addition of ₹ 23,85,738/-. Ld. Counsel for the assessee vehemently argued that the authorities below were .....

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letter is 31.05.2003 to 06-2006, 01.05.2003 to 01.2005 and 08.09.2003 to 06.2005. Ld. Counsel also drew our attention to the letter from VFS (India) Pvt. Ltd. at page no.9 of the paper book, wherein a certificate is enclosed stating therein that all services/rent agreements with the assessee was terminated on or before 1st April, 2004 and there was no payment released to the assessee after this date. Ld. Counsel for the assessee submitted that the ld. CIT(A) confirmed the payments with regard to .....

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and perused the material available on record. We find that the Assessing Officer in para 5.5 and 5.6 of his order has made addition by observing as under: 5.5 The assessee filed an affidavit on 31.12.2007 stating that she had not earned any rental income during the F.Y under consideration. However, such affidavit was not supported by any documentary evidences in the form of Cancellation Agreement. The affidavit cannot be accepted as the same is a self-serving statement not supported by any docum .....

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it amply clear that the said agreementswere to remain effective during the F.Y 2004-05 also. The assessee has not furnished any documentary evidence to prove that the said agreements had been cancelled. When the only piece of evidence available in a particular case is the statement of the assessee, any judicial authority can accept the same and order assessment on such sole evidence. But when, even according to the assessee, there is other documentary evidence of corroborative value and the sam .....

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received the same as claimed by her. She was supposed to declare the same in her return of income on accrual basis. However, the assessee has not declared such income. The income of ₹ 32,32,404/- as computed above is hereby added to the total income of the assessee as undisclosed income. Penalty proceedings U/s 271(l)(c) of the Income Tax Actare initiated for concealing true particulars of income. 6. However, ld. CIT(A) after considering the submission decided the issue in para 6 & 7 o .....

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ravels Pvt. Ltd. an agreement dated 21.01.2003 existed whichwas valid for the period 15.01.2003 to 14.10.2005. The appellant has filed a cancellation agreement dated 01.04.2004 which as observed by the Assessing Officer, clearly states that all amounts payable under the agreement for service rendered till 14.10.2005have been duly received and no amount is outstanding as on the date of this agreement. It is pertinent to note that the copy of this agreement was not filed during the assessment proc .....

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llant could not file any convincing evidence to show that income has not been earned by her from M/s. Kuoni Travels Pvt. Ltd., the Assessing Officer was justified in making the addition of ₹ 4,80,000/- and the same is confirmed. With regard to M/s. VFS (India) Pvt. Ltd. the appellant had three agreements for providing service. Two agreements were valid for the entire year under consideration, while one agreement was valid till 31.01 2005. Vide letter dated 26.12.2006 M/s. VFS (India) Pvt. .....

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Officer should have brought to tax ₹ 6,63,870/-(66387X10). The addition to this extent is confirmed while the balance being ₹ 1,32,774/- is deleted. With regard to receipt from UTI Bank Ltd., the UTI Bank has categorically stated that they have not paid the appellant any sum beyond the period of October, 2003. No agreement had been entered into with the UTI Bank furthersince there is no evidence of rent received either as per anyagreement or any other source there was no justificati .....

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58,500/- is confirmed. The appellant gets a relief of ₹ 8,46,666/-. The balance of ₹ 23,85,738/-. 7. As per the assessee, the contracts were terminated before the expiry of the contract period. The assessee had not received any payment towards the services rendered nor the income was accrued to the assessee during the year under consideration. Under these facts, the authorities below were totally unjustified for making addition. There is no dispute with regard to the fact that the a .....

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abhat Automation. Out of these, 5 parties, the agreement in respect of 3 parties was up to the period of 14th October, 2005 to 7/9th June, 2006 and in respect of other three parties, there was no agreement. As per the Assessing Officer, the agreement amount was ₹ 32,32,404/-. Therefore, this amount in fact accrued to assessee and on that basis, the Assessing Officer made addition of the same as undisclosed income. However, the ld. CIT(A) reduced this amount to ₹ 23,85,738/- and gave .....

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enclosed at page 9 of paper book. During course of hearing, ld. Counsel for the assessee has drawn our attention to the signature made at the certificate enclosed at page 9 and letter enclosed at page nos. 115 & 116 and the agreement enclosed at page 117 to 120, one of the sundry creditor is Mr. George Thomas whose signature matches with the certificate on page 9 of the paper book. Under these facts, it can be inferred that the finding of the authorites is ill founded and cannot be sustained .....

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attention to the cancellation of agreement between M/s. Kuoni travels (India) Pvt. Ltd. at paper book page 10. The cancellation of agreement dated 1st April, 2004 is made. As per this cancellation, agreement dated 31.01.2003 was terminated with immediate effect meaning thereby there was no contract existing between the parties post 1st April 2004. As per this cancellation, agreement amount of ₹ 15,50,000/- was to be refunded. The contention of the assessee is that this amount of ₹ 1 .....

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ent for services rendered till 14.10.2005 has been duly received and no amount is outstanding as on date of this agreement. As per this term, if it is to be read completely, then there was no dues outstanding on 1st day of April, 2004. However, it is clear from the contract that the service preferred was rendering services till 14.10.2005 despite the fact that the contract was terminated on 1st April, 2004. Under these facts, it cannot be inferred that no service was provided post 1st April, 200 .....

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