2022 (6) TMI 83 - HC - Income Tax

Unaccounted brokerage - addition on the basis of the statement made by the assessee as recorded u/s 131 - ITAT deleted the addition - HELD THAT - On both the aforesaid issues or rather to put in other words, on all the proposed questions of law, there are findings of the fact recorded by the Tribunal in its impugned order. We have looked into in the line of reasoning adopted by the Tribunal so far as the addition of Rs.68 Lakh is concerned and from para 17 onwards, so far as the statement of the assessee recorded under Section 131 of the Act is concerned. We are of the view that none the questions as proposed by the Tribunal to be termed as substantial questions of law.

Summary

Issues:
1. Addition of unaccounted brokerage and commission.
2. Retraction of statement made under Section 131 of the Income Tax Act.

Analysis:
1. The Tax Appeals under Section 260(A) of the Income Tax Act, 1961 were filed by the Revenue challenging the orders passed by the Income Tax Appellate Tribunal for the Assessment Year 2011-12. The main issues raised by the Revenue were regarding the deletion of additions of Rs. 2,89,83,750/- and Rs. 68,00,000/- related to unaccounted brokerage and commission. The Tribunal had to consider whether the assessee's admission of involvement in land transactions and receipt of commission was valid, especially when the statement was retracted later. The Tribunal examined the evidences and the circumstances surrounding the admission and retraction of the statement.

2. The Tribunal analyzed the facts and findings related to the addition of Rs. 68 Lakh as unaccounted brokerage and Rs. 3 Crore based on the statement recorded under Section 131 of the Act. The Tribunal reviewed the reasoning from para 4.4 to 11.9 for the brokerage addition and from para 17 onwards for the statement recorded under Section 131. The Tribunal concluded that the questions proposed by the Revenue did not constitute substantial questions of law. Ultimately, the Appeals were dismissed by the High Court, upholding the Tribunal's findings on both issues.

In conclusion, the judgment focused on the validity of the additions of unaccounted brokerage and commission, considering the assessee's admission and subsequent retraction of the statement made under Section 131 of the Income Tax Act. The High Court upheld the Tribunal's decision, finding no substantial questions of law in the Revenue's challenges.