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TMI Blog2019 (4) TMI 408X X X X Extracts X X X X X X X X Extracts X X X X ..... apa' at Davangere on 30.12.1999; wherein certain notebooks containing entries about receipts and payments of the aforesaid Drama Company were recorded, were found and impounded. Pursuant thereto, the Assessing Officer (AO) on the basis of findings in the course of survey initiated proceedings under section 147 of the Act as he had reason to believe that income of the assessee, liable to tax had escaped assessment for Assessment Years 199596 to 1998-99 and after recording reasons in this regard, issued notices under section 148 of the Act on 03.02.2000 to the assessee for these four assessment years. The assessments for these Assessment Years 1995-96 to 1998-99 were concluded under section 143(3) r.w.s. 147 of the Act on the basis of material impounded in the course of survey proceedings; vide separate orders dated 27.03.2002 as under: Assessment Year Income Returned (Rs.) Date of filing of return of Income Annual income (Rs.) 1995-96 74,800/- 05.03.1998 6,33,434/- 1996-97 (-)44,940/- 05.03.1998 19,46,531/- 1997-98 1,42,950/- 05.03.1998 22,18,942/- 1998-99 69,600/- 21,59,829/- 2.2 Aggrieved by the orders of assessment dated 27.03.2002 for Assessment Years ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 143(3) r.w.s. 147 and 260A of the Act vide orders dated 27.03.2008 wherein the assessed income was determined as under: Assessment Year Income Returned (Rs.) Income assessed (Rs.) 1995-96 74,800/- 2,58,360/- 1996-97 (-)44,940/- 6,39,831/- 1997-98 1,42,950/- 18,05,639/- 1998-99 69,600/- 13,73,289/- 2.4 Aggrieved by the orders of assessment dated 27.03.2008 for Assessment Years 1995-96 to 1998-99, the assessee filed appeals before the CIT-4, Bangalore. The CIT(A) disposed off the assessee's appeals for these 4 years vide order dated 27.09.2018 allowing the assessee partial relief; the details of which are as under: A. Income from KBR Drama Company sustained to the extent of 50% of income assessed by AO: Assessment Year Assessed by AO (Rs.) Addition sustained by CIT(A) to the extent of 50% (Rs.) 1995-96 NIL NA 1996-97 4,11,831/- 2,05,916/- 1997-98 13,02,689/- 6,51,344/- 1998-99 10,91,689/- 5,45,845/- B. Receipts from Kalyana Mantapa was sustained to the extent of 30% of receipts determined by the AO. Assessment Year Receipts from Kalyana Mantapa as determined by AO (Rs.) CIT(A) has upheld these additions to the extent of 30% of receipts dete ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. The AO is, however, directed to re-compute the interest chargeable u/s 234B of the Act, if any, while giving effect of this order. 6. Ground No. 4 for Assessment Year 1996-97 to 1998-99 - Income from KBR Company 6.1 In support of the grounds raised on this issue (supra), the learned AR for the assessee submits that the gross receipts as per the profit and loss accounts filed by the assessee, exceeds the total amount as per the impounded material and there is no suppression of turnover in Assessment Years 1996-97, 1997-98 and 1998-99. The learned AR further submitted that only a portion of the actual expenses are noted in the material impounded in the course of survey and the same does not cover all expenses. According to the learned AR, if only the expenses, which are partly recorded in the impounded material were to be considered against the actual expenses incurred, the same would lead to absurd results. The additions made by the AO, by considering the impounded material alone and not taking into account actual expenses, has thus resulted in huge unwarranted additions; which are contrary to facts. The learned AR has also furnished a table; wherein the working shows that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he addition made at on adhoc figure of 50%; as being the earnings of the drama company. In view of the peculiar facts and circumstances of the case and in the absence of any comparable case put forth by the authorities below, the additions, even to the adhoc extent upheld by the CIT(A) cannot be justified. In this view of the matter, I delete the additions sustained by the CIT(A) on account of income from drama company for Assessment Years 1996-97, 1997-98 and 1998-99. Consequently, ground No.4 raised in assessee's appeal for these Assessment Years is allowed. 7. Ground No.4 for Assessment Year 1995-96 Ground No. 5 for Assessment Years 1996-97 to 1998-99 - Income from Kalyana Mantapa 7.1 On the issue of additions on account of Kalyana Mantapa (i.e., income from house property), the learned AR submitted that at para 24 and 25 of the impugned order, the CIT(A) has rendered a categorical finding that the receipts / donations of the Kalyana Mantapa are received by a Temple Committee and receipts are issued by Someshwara Temple and not the assessee and that the funds so collected are utilised towards temple organisational activity and the Kalyana Mantapa. Therefore, according to th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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