TMI Blog2007 (8) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... 00-2001. 2. The aseessees were the Directors of M/s .Hotel AMS Pvt. Ltd., Kondalapatti, Salem. During the course of survey conducted on 16.11.1999 under Section 133A of the Income Tax Act, it was noticed that the company had constructed the hotel with the share capital funds said to have been floated by the Directors. On enquiry with the assessees, the assessees offered a sum of Rs.12,00,000/- as income, out of which Rs.2,00,000/- each in the name of the assessees and remaining in the name of other members in Hindu Undivided Family. The assessees also admitted that there was no source for share capital and their share in the construction amounting to Rs.2,00,000/- each can be taken as unexplained investment. The assessees file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appeals were not maintainable. 4. Heard the learned counsel for the revenue and perused the materials on record. 5. It is not argued by the counsel for the revenue that the circular issued is not binding on the revenue. However, he relied on the decision reported in CIT v. Abhishek Industries Ltd. [2006] 286 ITR 1 (P H) The issue involved in these appeals has been considered by us in the order made in T.C.(A) No. 222 of 2004 (CIT v. Associated Electrical Agencies [2007] 295 ITR 496 (Mad)) dated August 16, 2007 and held against the Revenue in the sense that if the tax effect is less than as provided in the Central Board Direct Taxes circular in F.No.279/126/98-ITJ and if the case has not come within the exceptions made i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it also the Commissioner of Income Tax (Appeals) after considering the statement submitted before him has found that the statement showed the business of the assessee, capital contribution shown in the returns of income before the survey, amount of authorised capital, paid up capital, loan from SUCB, Kondalampatty Branch, amount received from shareholders, estimated expenditure for furniture and fittings, status of maintenance of books of accounts, date of purchase of land, rate thereof etc., It was not on record that concealment was discovered as a result of enquiry or investigation of material found during the course of survey conducted by the Department nor it was a case of compatibility of the disclosure made with items of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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