2013 (8) TMI 247 - HC - Income Tax

Undisclosed income - Receipt of on-money - Addition made on account of on money receipt - Tribunal deleted addition - Held that - amount mentioned along with rates per sq.ft. of different floors on the loose papers is in respect of an estimate asking for the loan from the bank - No other evidence has been shown to justify that these amounts were received from purchasers it is not justified to conclude that assessee received on-money - CIT (Appeals) & ITAT were right in holding that on the basis of these loose papers no addition can be made - Following decision of CIT vs. Maulikkumar K. Shah 2007 (7) TMI 267 - GUJARAT HIGH COURT CIT vs. K. Bhuvanendran 2006 (12) TMI 127 - MADRAS HIGH COURT and CIT vs. Balaji Wire Pvt. Ltd. 2007 (8) TMI 7 - HIGH COURT NEW DELHI - Decided against Revenue.

Summary

Issues:
Challenge to the impugned judgment and order dated 22.02.2013 passed by the Income Tax Appellate Tribunal (ITAT) regarding the addition of Rs.1,45,37,500/- as on-money from the Scheme Ganesh Plaza.

Analysis:
The appellant Revenue contested the ITAT's decision to delete the addition of Rs.1,45,37,500/-, claiming it as undisclosed income from on-money received during the sale of premises at Ganesh Plaza. The Assessing Officer (AO) based the addition on the partner's admission of concealment during a statement, where on-money collection was acknowledged. However, the AO failed to provide specific documentary evidence supporting the on-money receipt. The ITAT, citing previous court decisions, found the lack of incriminating material and directed the deletion of the addition.

The High Court noted the absence of concrete evidence supporting the on-money receipt in the AO's assessment, solely relying on the partner's retracted statement. The issue aligned with previous judgments from the Madras High Court, Delhi High Court, and the Gujarat High Court. Considering the facts, the court upheld the ITAT's decision, emphasizing the lack of substantial legal questions and dismissed the Tax Appeal.

In conclusion, the High Court upheld the ITAT's decision to delete the addition of Rs.1,45,37,500/- as unaccounted income from alleged on-money receipts, citing the court's appreciation of the evidence and previous legal precedents. The appeal was dismissed as no substantial question of law arose from the case.