2017 (9) TMI 1720 - HC - Income Tax

Undisclosed investment - undisclosed ownership of assessee in the 22 properties - additions on account of distribution of profit between two partners - addition made in respect brokerage earned by the assessee - Held that - While considering the case, the Tribunal had observed that all the questions are answered in favour of the assessee and against the department. - Revenue appeal dismissed.

Summary

Issues:
1. Challenge to Tribunal's judgment and order on undisclosed investments in properties.
2. Challenge to Tribunal's judgment on undisclosed ownership of properties.
3. Challenge to Tribunal's judgment on profit distribution between partners.
4. Challenge to Tribunal's judgment on brokerage earned by the assessee.
5. Challenge to Tribunal's judgment on profit on sale of closing stock.

Analysis:
1. The appellant challenged the Tribunal's decision regarding the addition of undisclosed investments in properties owned by the assessee. The Tribunal had partly allowed the appeal by the assessee and dismissed the department's appeal. The substantial question of law was whether the Tribunal was justified in deleting the addition of a specific amount made by the Assessing Officer and confirmed by the CIT(A) concerning the undisclosed investments in five properties. The Tribunal ruled in favor of the assessee, and the High Court agreed with this view, ultimately dismissing the appeal.

2. Another issue involved the Tribunal's decision on the undisclosed ownership of properties by the assessee. The Tribunal had deleted the addition made by the Assessing Officer regarding the undisclosed ownership of 22 properties based on material seized during a search. The substantial question was whether the Tribunal was justified in deleting this addition. The Tribunal's decision favored the assessee, and the High Court concurred with this decision, leading to the dismissal of the appeal.

3. The Tribunal's judgment on the distribution of profit between two partners, which was admitted by one of the partners, was also challenged. The Tribunal had deleted the addition made by the Assessing Officer and confirmed by the CIT(A) concerning the profit distribution. The substantial question was whether the Tribunal was justified in deleting this addition. The Tribunal's decision in favor of the assessee was upheld by the High Court, resulting in the dismissal of the appeal.

4. The Tribunal's decision on the brokerage earned by the assessee was also disputed. The Tribunal had deleted the addition made by the Assessing Officer in respect of brokerage earned by the assessee. The substantial question was whether the Tribunal was justified in deleting this addition. The Tribunal's decision favoring the assessee was supported by the High Court, leading to the dismissal of the appeal.

5. Lastly, the Tribunal's decision on the profit on the sale of closing stock of three properties was challenged. The Tribunal had deleted the addition made on account of profit on the sale of closing stock. The substantial question was whether the Tribunal was justified in deleting this addition. The High Court agreed with the Tribunal's decision in favor of the assessee, resulting in the dismissal of the appeal.