2019 (2) TMI 1273 - HC - Income Tax

Unexplained investment in properties - assessment was made in the case of the assessee on the strength of documents recovered on a search conducted in the premises of one P.P.Bhaskaran - HELD THAT - There was no ground for appeal for the assessee- P.P.Bhaskaran on the aspect of undisclosed investment with respect to Kuthuparamba property insofar as the same having been deleted by the Tribunal. Hence, as of now, the remand order would prevail and the observations made in the judgment dated 16.12.2016 later to the judgment directing remand, would have no effect. The issue with respect to the respondent herein would also stand remanded to the Tribunal. The Tribunal would consider the issue afresh. Other addition is with respect to undisclosed income in the property in Mahe - assessee points out that the issue in the case of Jafees Mohammed, P.P.Baskaran, and Abdul Gadhafi for the assessment year 2005-06 have been remanded back to the Assessing Officer. No warrant for deciding on the questions raised in this appeal. We merely direct the Tribunal to decide on the question of undisclosed investment with respect to the property in Kuthuparamba and the Assessing Officer to decide on the question of undisclosed income with respect to the property at Mahe.

Summary

Issues:
1. Deletion of additions made by the Assessing Officer regarding unexplained investment in properties at Kuthuparamba and Mahe.
2. Conflicting orders by the Division Bench regarding undisclosed investment in the property at Kuthuparamba.
3. Remand of the issue to the Tribunal for fresh consideration.

Analysis:

Issue 1: Deletion of Additions
The appeal raised concerns about the Tribunal's deletion of two additions made by the Assessing Officer regarding unexplained investment in properties at Kuthuparamba and Mahe for the assessment year 2005-06. The assessment was based on documents recovered during a search at P.P.Bhaskaran's premises.

Issue 2: Conflicting Orders
The Division Bench dealt with the specific question of undisclosed investment in the property at Kuthuparamba in various appeals related to P.P.Bhaskaran. The Tribunal's order on the addition made by the Assessing Officer was found unjustified and had attained finality. However, conflicting orders emerged from different judgments of the same Division Bench, leading to the remand of the issue to the Tribunal for reconsideration.

Issue 3: Remand for Fresh Consideration
The Court directed the Tribunal to reexamine the issue of undisclosed investment in the property at Kuthuparamba and instructed the Assessing Officer to decide on the undisclosed income related to the property in Mahe. The remand order prevailed over subsequent judgments, emphasizing the need for a fresh assessment by the Tribunal.

In conclusion, the appeal highlighted the complexities arising from conflicting orders and the necessity for a thorough reconsideration of the issues by the Tribunal. The judgment emphasized the importance of proper assessment procedures and the need for clarity in addressing undisclosed investments and income in the properties under scrutiny.