2017 (12) TMI 1363 - HC - Income Tax

Assessments under Section 158BC - additions made on account of payments attributable to the assessee through his wife for an acquisition - Held that - This Court is of the opinion that the chequered history of the litigation shows unanimity of one aspect that the assessee s wife was separately assessed to income. She had declared the acquisition of the property. She was the registered owner. No attempt was made on the part of the revenue to add that income in her hands. Likewise in the case of the other additions, findings are concurrent and rendered after examination and analysis of the material evidence. Having regard to these factual conclusions, the Court is of the opinion that no question of law arises; the appeal is, therefore, dismissed.

Summary

Issues:
1. Alleged error in setting aside additions made by Assessing Officer in a search assessment under Section 158BC of the Income Tax Act, 1961.

Analysis:
The High Court addressed the revenue's appeal under Section 260A of the Income Tax Act, 1961, concerning the additions made by the Assessing Officer during a search assessment. The appellate Commissioner set aside an addition attributed to the assessee related to a property purchase by his wife. The search operations led to block returns, and subsequent assessments were appealed against. The ITAT remitted certain issues for re-determination to the AO, including additions on property investment, undisclosed turnover, and alleged capital contributions in benami business units.

The AO, after remand, added a total amount, leading the assessee to appeal to the CIT (A) regarding investment in the property and initial capital in benami units. The CIT (A) restricted the additions based on directions from the ITAT. The Court noted that the property was registered in the wife's name, and no evidence suggested the assessee's contribution. The CIT (A) disagreed with the AO on additions related to benami firms' capital contributions, following ITAT's directions to verify undisclosed capital contributions based on bank accounts.

Regarding the addition attributed to payments through the wife for an acquisition, the ITAT endorsed the CIT (A)'s view, applying the rule of consistency. The ITAT referred to a similar case involving the assessee's brother, where additions were set aside. The Court found no legal question arising, as the wife was separately assessed, and the additions were based on factual conclusions after examining material evidence. The appeal was dismissed, affirming the concurrent findings.