9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2006 (12) TMI 81 - HC - Income TaxAssessment Addition in the total income of assessee-firm on the basis of the entries in dairy deleted by the tribunal on the ground of the entry is a personal transaction of a partner HC found no perversity in the finding of the tribunal and upheld the order of tribunal
Issues:
Determining whether the Appellate Tribunal's findings were supported by the record and not perverse leading to the deletion of additions totaling Rs. 3,71,000 and Rs. 7,000. Analysis: The High Court was tasked with evaluating the Tribunal's decision regarding the deletion of additions amounting to Rs. 3,71,000 and Rs. 7,000. The Tribunal's reasoning was based on the contents of a diary, personal transactions of an individual, and the nature of the transactions in question. The Court noted that the diary primarily contained personal transactions of an individual, which were distinct from the business transactions of the assessee firm. Despite initial statements by the partner of the firm, it was later clarified that the transactions were personal and not related to the firm. The Court emphasized that hasty or incorrect statements do not automatically lead to undisclosed income for the assessee. Additionally, the Court highlighted the delayed follow-up by the Department in investigating the transactions, ultimately concluding that the additions were not justified based on the evidence and statements provided. Consequently, the Court upheld the Tribunal's decision to delete the additions. The Court further addressed the argument that the partner of the firm had initially mentioned something about the transactions but later clarified that they were personal in nature. This clarification, coupled with the lack of certainty in the partner's initial statement, supported the Tribunal's decision to delete the additions. The Court found no perversity in the Tribunal's findings based on these facts and upheld the decision in favor of the assessee and against the Revenue. As a result, the Income Tax Reference was disposed of, affirming the deletion of the additions totaling Rs. 3,71,000 and Rs. 7,000.
|
