9911796707
TMI Blog2001 (8) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... al or genuine or were sham and make believe or a colourable device or that the assessee had resorted to any dubious method or subterfuge are based on any material and whether such conclusion is otherwise unreasonable and perverse?" The petitioner is a public limited company within the meaning of the Companies Act, 1956. The relevant assessment year is 1991-92 for which the year ending is March 31, 1991. The system of accounting is mercantile. The assessee is an investment company and used to carry on the business, inter alia, of financing and dealing in shares sector. During the financial year 1985-86, this company took up a building construction project as a business venture. The company purchased a plot of land together with the building ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... further subject to reassessment after the receipt of the valuation report. In appeal before the Commissioner of Income-tax (Appeals), the Commissioner of Income-tax (Appeals) has allowed the loss claimed by the assessee. In the appeal before the Tribunal, the Tribunal has reversed the view taken by the Commissioner of Income-tax (Appeals). From the perusal of record it appears that the assessee has incurred the expenditure on the construction as under: ------------------------------------------------------------------------- Rs. ------------------------------------------------------------------------- 1. Cost of land 12,00,000.00 2. Registration charges 2,34,694.95 3. Expenses on construction of the project- (i) Financial year 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the one hand, and on the other, the appellant has understated or suppressed the sale value of the flats inasmuch as this is the basic requirement of applying section 145 when it has been established that the accounts have been prepared in such a manner that they cannot be relied upon. There is no material or evidence shown in the assessment order or brought on record to prove that the accounts are not reliable or they suffer from some defects. Further, it has not been proved by the Assessing Officer that the method of accounting adopted by the appellant is one from which he is unable to deduce the correct taxable income of the appellant. On the contrary, the accounts would clearly show that the appellant has adopted the recognized method ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that was a cogent piece of evidence which the Tribunal was entitled to consider in arriving at its own estimate of capital gains of the Russa Road Property. The capital gains firstly is not issue before us, secondly this issue has been concluded by the Supreme Court in the case of K.P. Varghese v. ITO [1981] 131 ITR 597, wherein their Lordships have taken the view that for assessing the capital gains the consideration disclosed on the transfer of the assets should be accepted, if the Department wants to estimate the higher consideration, on transfer, received by the assessee, the burden to prove it is on the department that there was underhand dealing and the assessee has received more than the disclosed amount. After that judgment, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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