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Issues Involved:
1. Rectification of the common order passed by the Tribunal. 2. Taxation of undisclosed income and profits from certain projects. 3. Allocation of profits between individuals and the company. 4. Jurisdiction and authority of the Tribunal u/s 254(2). Summary: Issue 1: Rectification of the Common Order The Revenue filed a Miscellaneous Application seeking rectification of the Tribunal's common order dated 29.07.2011. The Tribunal had disposed of appeals filed by Shri Mansukhlal N Patel and M/s. Ambica Realities Pvt. Ltd. The Revenue sought to rectify the order to bring the remaining amount of profit from certain projects to tax in the hands of M/s. Ambica Realities Pvt. Ltd. Issue 2: Taxation of Undisclosed Income and Profits Search and seizure operations u/s 132 were conducted in the Rajani Builders group, including M/s. Ambica Realities Pvt. Ltd. and Shri Mansukhlal N Patel. Incriminating materials indicated profits of Rs. 2,16,56,000/-. Block assessments were completed u/s 158BC, assessing undisclosed income in the hands of both entities. The Tribunal's order dated 29.07.2011 confirmed the addition of Rs. 13,53,500/- in the hands of Shri Mansukhlal N Patel, representing his 6.25% share in the profits, but deleted the main addition of Rs. 2,16,56,000/- in both cases. Issue 3: Allocation of Profits The Tribunal noted that the allocation of 6.25% of profits to Shri Mansukhlal N Patel necessitated corresponding availability of profits in the hands of M/s. Ambica Realities Pvt. Ltd. The Tribunal rectified its order to tax the entire profit of Rs. 2,16,56,000/- on a substantive basis in the hands of M/s. Ambica Realities Pvt. Ltd., ensuring consistency with the High Court's order confirming the 6.25% share in the hands of Shri Mansukhlal N Patel. Issue 4: Jurisdiction and Authority u/s 254(2) The Tribunal emphasized its authority u/s 254(2) to rectify mistakes apparent from the record to prevent miscarriage of justice and avoid prejudice. The Tribunal found that the deletion of the entire profit in both cases was inconsistent and self-contradictory. Therefore, it amended its order to tax the profit substantively in the hands of M/s. Ambica Realities Pvt. Ltd. Conclusion: The Miscellaneous Application No.11/Rjt/2012 filed by the Revenue in the case of M/s. Ambica Realities Pvt. Ltd. was allowed to the extent of taxing the entire profit of Rs. 2,16,56,000/- substantively. The Miscellaneous Application No.06/Rjt/2012 in the case of Shri Mansukhlal N Patel was dismissed as the Tribunal's view had been confirmed by the High Court, merging the order and rendering it non-rectifiable u/s 254(2). Order Pronounced on 04.10.2013
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