2018 (8) TMI 1426 - HC - Income Tax

Undisclosed investment / income - additions u/s 69C - ITAT has allowed credit additions made towards undisclosed investment / undisclosed income though the applications of were abated by the Settlement Commission u/s.245HA. Revenue appeal admitted.

Summary

Issues involved:
1. Undisclosed investment on account of Umiya Land
2. Undisclosed Investment in Land at Nava Naroda (Karnavati)
3. Unexplained investments of ?4,87,98,000
4. Addition on account of undisclosed investment in Vastral Land
5. Undisclosed investment on account of Naroda (Kathwada) Land
6. Unaccounted Payment to Kantibhai (A.Y.199697)
7. Addition of ?2,50,000 on account of Unexplained cash (A.Y. 199798)
8. Unexplained expenditure/Payments
9. Addition on account of Cash Payments to Shri Kantibhai ?16 lacs & ?13 lacs
10. Protective addition of ?63,34,924 unexplained cash payment to Arwindbhai Patel
11. Unexplained investment in FDRs
12. Addition on account of cash received of ?2,07,20,284
13. Addition on account of cash payment of ?45,03,516 in A Y 199798 and also of ?75,34,840 in A Y 199798

Analysis:
1. The appeals filed by the Revenue involve questions related to undisclosed investments in Umiya Land and Land at Nava Naroda, as well as unexplained investments. The Tribunal's decisions on allowing credits for these investments are being challenged by the Revenue.
2. The Revenue raised additional questions regarding undisclosed investments in Vastral Land, Naroda (Kathwada) Land, unaccounted payments, unexplained cash, and various other expenditures. The Tribunal's decisions on these matters are under scrutiny.
3. The Tribunal's approach to determining the undisclosed income and investments in different scenarios, such as Vastral Land and Naroda (Kathwada) Land, is being questioned by the Revenue.
4. The Tribunal's decisions on specific additions and deletions, such as in the case of unexplained cash payments and investments, are being reviewed by the Court.
5. The Court found that certain questions related to small sums or matters already addressed in previous assessments were not substantial enough to warrant further consideration.
6. The Court acknowledged that some issues were fact-based and that the findings of the lower authorities were concurrent, leading to no significant legal questions arising from those issues.
7. The advocate representing the Respondent waived the notice of admission, indicating their readiness to proceed with the case based on the issues raised.

This detailed analysis covers the various legal issues and the Court's examination of the Tribunal's decisions on undisclosed investments, unexplained income, and other financial matters raised in the appeals filed by the Revenue.