2013 (4) TMI 911 - HC - Income Tax

Summary

Issues Involved:
The judgment involves the following issues:
1. Whether the Appellate Tribunal erred in deleting the addition made on account of the sale of Ampad Land?
2. Whether the order of the Appellate Tribunal failed to consider the dates of "cash receipts" mentioned in seized documents?

Issue 1: Addition on Account of Sale of Ampad Land
The Respondent assessee, along with family members, owned land at Ampad and was subjected to search proceedings. Documents seized during the search indicated a total receipt of Rs. 5.24 Crores for the sale of the land from Kanubhai Patel. The Assessing Officer added the entire amount as "unaccounted cash credit" of the assessee, alleging it was unaccounted. However, the CIT [A] deleted the addition, stating that the land was subsequently sold in 2009-10 to various parties for Rs. 1.80 Crores, with short term capital gain offered for tax in that year. The Tribunal upheld the CIT [A]'s decision, considering the facts and the disclosed income in the relevant assessment year.

Issue 2: Consideration of Cash Receipts
The Assessing Officer disregarded the assessee's explanation that the amount received from Kanubhai Patel for the Ampad land sale, which was later canceled, was returned. The Tribunal found that the entire amount was shown as undisclosed income in 2009-10 and rejected the double taxation of the same amount for 2007-08 and 2008-09. The Tribunal emphasized that the land was sold only once, with short term capital gain disclosed, and any attempt to tax the entire amount again would result in double taxation.

In conclusion, the Tribunal dismissed the Tax Appeal, stating that the issue was fact-based, and no legal question arose. The judgment affirmed the decision to exclude the disputed income from the total income for the relevant assessment year.