2013 (11) TMI 372 - HC - Income Tax

Reliance on Katchi Rokar as books of accounts Held that - Katchi Rokar has to be taken as one complete document and cannot be bifurcated for making additions on account of income shown, without reducing from the said amount, the expenditure duly recorded and mentioned in Katchi Rokar records - Katchi Rokar as true and correct documentation - Net income as shown and recorded should be treated as true and correct income earned Decided against the Revenue.

Summary

Issues:
Interpretation of disputed figure in assessment order regarding expenditure and income shown in Katchi Rokar records.

Analysis:
The appellant disputed the figure of Rs.39,02,898/- mentioned in the assessment order, arguing that it was incorrect. However, the Tribunal noted that this contention was not raised during the appeal by the revenue against the first appellate authority's order. The assessing officer and appellate authorities considered the Katchi Rokar records, which showed an expenditure of Rs.39,02,898/- and gross income of Rs.45,10,874/. The assessing officer disallowed the expenditure as there were no supporting vouchers or bills. In contrast, the Commissioner of Income Tax (Appeals) and the Tribunal held that the Katchi Rokar should be viewed as a complete document, not to be separated for adding income without deducting the recorded expenditure. They concluded that if the Katchi Rokar was deemed accurate documentation, the net income recorded should be accepted as the actual income earned.

The findings regarding the treatment of Katchi Rokar records were considered as factual determinations that did not warrant interference unless there was contradictory evidence. Consequently, the appeal under Section 260A of the Income Tax Act, 1961 was dismissed.