TMI Blog2016 (12) TMI 1299X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal to the effect that the entry made in the pay-in-slips cannot prevail over the entry in the books of account since the books of account would reflect the appropriate record wherein treatment of receipts would be found. In the circumstances, we have no hesitation coming to our conclusion and as a result we find that the Tribunal was justified in holding that the amount of ₹ 1 crore cannot be assessed as undisclosed income. In the result, the question referred to us for our opinion is answered in the affirmative i.e. in favour of the assessee and against the Revenue. - Income Tax Reference No. 392 of 1999 - - - Dated:- 23-12-2016 - M. S. Sanklecha And A. K. Menon, JJ. Mr. Suresh Kumar for the Applicant Mr. Atul Ja ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g a search operation was carried out at the assessee's office premises and the residence of the Managing Director on 27th March, 1996. It however appears that in the bank pay-in-slip prepared by the assessee's staff, the narration was given as cheque received from them against our work at Goa and in respect of the second cheque the narration mentioned cheque received against business compensation . 4. Subsequently on 2nd September, 1996 the company filed a return of income declaring undisclosed income amounting to ₹ 2,34,000/-. During the search it was noticed from the bank slips that ₹ 1 crore was received by the assessee as compensation from HHL. In the statement of the Managing Director of the assessee he conte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. We have heard Mr. Suresh Kumar, the learned counsel for the Revenue and Mr. Atul Jasani, the learned counsel appearing for the respondent. According to Mr. Suresh Kumar the Tribunal was not right in concluding that no compensation was received by the assessee. According to him the fact that the assessee was engaged for the purpose of constructing the building would mean that the assessee would have been entitled to some compensation. If the construction was to be completed the assessee's stood to gain but since the project was abandoned, the assessee was deprived from earning its profits and viewed from this aspect the likelihood assessee having received compensation was much higher. He relied upon the fact that entries in the bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of account cannot be relied upon. It is pertinent to mention that the Revenue had not brought on record any material indicating that the amount received by the assessee was by way of compensation. On the other hand, the employees of the assessee were cross examined in respect of the entries made in the pay-in-slips and this cross examination had revealed that narrations in the pay-in-slips accompanying the two cheques of ₹ 50 lakhs each were made by them on their own without any directions or instructions from the assessee. Considering the overall picture we are of the view that the order of the Tribunal cannot be faulted. However, we are in agreement with the view taken by the Tribunal to the effect that the entry made in the pay-in- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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