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TMI Blog2012 (5) TMI 333X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee - IT Appeal No. 3034 of 2005 - - - Dated:- 28-11-2011 - V.G. Sabhahit and S.N. SatyanarAyana, JJ. E.R. Indrakumar and E. Sanmathi Indrakumar for the Appellant. A. Shankar and M. Lava for the Respondent. JUDGMENT V.G. Sabhahit, J. This appeal is filed by the revenue being aggrieved by the order passed by the Income Tax Appellate Tribunal (hereinafter referred to as "ITAT" for short). Bangalore, in No. 176/Bang/1997, wherein the appeal filed by the revenue has been rejected by order dated 04.05.2005. 2. The material facts in brief leading upto this appeal is as under: The assessee has submitted his return and on search of the premises of one Gopalakrishna, it was found that the assessee has received certai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd accordingly disallowed the addition made by the Assessing Officer amounting to Rs. 78,10,704/-. Being aggrieved by the order, appeal was preferred by Sridhar, as the original assessee, S. Ramachandran had died during the pendency of the assessment. Being aggrieved by the order by the ITAT dated 04.05.2005, this appeal is filed by the revenue. 3. This appeal has been admitted on 18.09.2006 to consider the following substantial questions of law: 1. Whether the Tribunal was correct in not taking into consideration that in the course of search material was detected which showed that the assessee had made deposits on 28.06.1986 and 17.06.1986 and on the date of maturity of this fixed deposits-, on 28.6-1997 and 17.06.1987 a sum of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spective societies and the assessee contemplate such a course of action and consequently, recorded a perverse finding? 5. Whether the Tribunal was correct in not taking into consideration the contract work executed by the assessee in respect of societies pertaining to civil works of formation of road, asphalting of road, digging of underground drainage, etc., cannot be independently assessed and the same should be treated as part of one whole contract without appreciating the bifurcation agreed to between the assessee and the societies in the written agreement and consequently recorded a perverse finding? 6. Whether the Tribunal was correct in proceeding to hold that the completed contract method of accounting should be adopted in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lose the undisclosed income of Rs. 78,10,704/- as held by the Assessing Authority and the Tribunal having regard to the fact that there was deduction of tax at source in making the payment under the contract, the department must have presumed to have knowledge of the transaction and the transaction cannot be said to be undisclosed as held by the decision of this Court relied upon by the learned senior counsel appearing for the appellants. 7. We have given careful consideration to the contentions of the learned counsel appearing for the parties and scrutinised the material on record. It is well settled that when the proceedings are initiated under Sections 158-BC read with 158-BD of the Act, the order of assessment can be made only upon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat when deduction had been made at source while making the payment, the receipt cannot be said to be undisclosed as the department would aware the deduction made regarding payment and the payment thereof as intimation would be sent to the department as held by this Court in the matter of the CIT v. Smt. Geetha P. Hegde [IT Appeal No. 3043 of 2005, dated 10.03.2010] and in the matter of CIT v. H.E. Mynuddin Pasha [2011] 202 Taxman 1 (Mag.)/[2011] 13 taxmann.com 147 (Kar.) and concerned cases dated 27.07.2011 and the said decision has also been followed by us in ITA No. 2608/2005 and i.e. view of the said decisions, it is clear that the finding of the Tribunal that when, the deduction has been made at source while making payment, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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