2009 (6) TMI 978 - HC - Income Tax

Summary

Issues involved:
1. Whether the Tribunal was right in deleting additions relating to prize winning lottery tickets and unsold tickets?
2. Whether the admission of concealed income in a statement on oath u/s.131 is good evidence for making an addition?

Issue 1 - Prize Winning Lottery Tickets and Unsold Tickets:
The Tribunal deleted additions of Rs. 5,53,83,730 and Rs. 3,51,48,008 for prize winning lottery tickets and unsold tickets respectively. The Assessing Officer presumed the assessee paid for the tickets, but the Tribunal found no evidence of monetary transactions with suppliers. Relying on a letter and evidence, the Tribunal concluded no purchase transactions occurred, similar to a previous case. The High Court upheld the Tribunal's decision, citing consistency with a previous ruling.

Issue 2 - Admission of Concealed Income:
The Tribunal considered the statement made by the assessee during a search operation, but found no material to support a claim of concealed income of Rs. 85 lakhs. The assessee had declared income of Rs. 44,54,000 and paid taxes accordingly. Due to lack of evidence, the Assessing Officer's claim of concealed income was deemed unjustified. Consequently, the High Court ruled in favor of the assessee on this issue as well.

In conclusion, the Tax Appeal was dismissed based on the Tribunal's decisions in favor of the assessee on both issues.