2013 (4) TMI 827 - AT - Income Tax

Summary

Issues involved: Appeal against deletion of addition of undisclosed income in respect of Taleigao property for assessment year 2007-08.

Facts of the case: The Assessee, a private limited company, was involved in manufacturing activities. A search was conducted under Section 132 in the case of Shri Suresh V. Parulekar, revealing an email suggesting undisclosed income from the sale of land at Taleigao.

Department's argument: The Assessing Officer added Rs. 6,60,00,000 as undisclosed income based on the seized email. The Department contended that the reconciliation of figures was not realistic, and the purpose of the amount received was not proven. They argued that the additional consideration for Taleigao property was not justified.

CIT(A)'s decision: CIT(A) deleted the addition, stating that no independent corroborative inquiries were made by the Assessing Officer. Lack of evidence and inconclusive facts led to the deletion of the addition. CIT(A) allowed the appeal regarding the Taleigao property.

Tribunal's decision: The Tribunal upheld CIT(A)'s decision, noting that the Assessing Officer failed to establish the genuineness of the transaction and did not conduct independent inquiries. The Tribunal found no evidence of on-money payment and agreed with the deletion of the addition.

Conclusion: The Tribunal dismissed the appeal, affirming the deletion of the addition of undisclosed income related to the Taleigao property for the assessment year 2007-08.