2013 (10) TMI 1173 - HC - Income Tax

Determination of income on the basis of TDS certificate - assessee claimed that the income pertaining the TDS certificates which were received late was booked in the earlier assessment year - Held that - Lottery prize amounts received are duly reflected in account books for the relevant assessment years. The assessee having proved that TDS certificates, issued late, pertain to receipts reflected in the account books for assessment year 2006-07, the impugned orders, based upon a detailed appraisal of the account books are legal and valid - After appraising the account books and referring to each receipt and TDS certificate, set out facts, there was no fault on the part of the assessee.

Summary

Issues:
Challenge to orders by Income Tax Appellate Tribunal and Commissioner of Income Tax (Appeals) for assessment year 2008-09.

Analysis:
The revenue challenged orders reversing the Assessing Officer's decision regarding the addition of Rs. 91,84,558. The substantial questions of law framed included whether the Tribunal was justified in deleting the addition without verifying if the receipts were shown in earlier years, and whether the claim of the assessee that the entire amount was disclosed in earlier years was valid. The appellant argued serious errors of law were committed, emphasizing that only Rs. 16,02,300 was explained, making the orders illegal. However, the respondent contended that the tabulated receipts clearly showed the amounts were reflected in the account books for the financial year 2005-06, countering the revenue's inference based on TDS certificates received in 2007-08.

The Commissioner of Income Tax (Appeals) accepted the assessee's explanation that the TDS certificates received in 2007-08 related to amounts shown in the account books for 2005-06. The Commissioner examined the accounts, acknowledged the delay in sanctioning amounts, and allowed the appeal based on the detailed submissions made by the appellant. The Tribunal affirmed this decision, dismissing the revenue's appeal. The assessment records for 2006-07 supported the claim that the TDS amount had been accounted for in the earlier year, leading to the deletion of the addition made by the Assessing Officer.

The detailed appraisal of the account books by the Commissioner of Income Tax (Appeals) and the subsequent affirmation by the Tribunal indicated that the receipts were duly reflected in the relevant assessment years. The argument for remitting the matter to verify receipts for 2005-06 was rejected as the account books were thoroughly examined, and the Commissioner found no fault with the assessee's plea. The findings of fact were deemed valid, and the appeal was dismissed, concluding that no substantial questions of law arose for adjudication.