2019 (7) TMI 973 - SCH - Income Tax

Charging section for discrepancy between book value and physical value of capital work in progress - ITAT observed that the same cannot be taxed u/s 69C but it can be taxed u/s 69 to 69B only - ITAT observed that Section 69C would not be applicable to the facts of the present case as there is no evidence of any unaccounted expenditure. The difference was only on account of estimation of the value of Work in Progress by the site engineers in November, 2008 and actually arriving at the value on physical verification which is reflected in the return of income as on 31.3.2009 thus no occasion to apply Section 69C would arise - as per HC even if assume that the closing stock i.e. work-in-progress is in excess of that recorded/disclosed by the Respondent, the same has to be added to the income only under Section 69A of the Act - HELD THAT - SLP dismissed.

Summary

The Supreme Court dismissed the special leave petition and declined to interfere with the impugned order passed by the High Court. Delay was condoned, and pending applications were disposed of. (Case Citation: 2019 (7) TMI 973 - SC)