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TMI Blog2015 (10) TMI 2169X X X X Extracts X X X X X X X X Extracts X X X X ..... ls (India) Pvt. Ltd., it cannot be inferred that no service was provided post 1st April, 2004. As it is clearly mentioned in the cancellation agreement that the service provider was rendering services till 14.10.2005 and the payments for the services rendered till 14.10.2005 was made on 1st April, 2004. The assessee has not placed any confirmation from the concerned parities clarifying the position. Under these facts, we are unable to accept the contention of the ld. Counsel for the assessee. The addition made in respect of M/s. Kuoni travels (India) Pvt. Ltd. is hereby sustained In respect of Prabhat Automation,Hon’ble Tribunal in assessee’s own case for A.Y. 2004-05 has held that the assessee had merely possessed the right thereof which is not equivalent to ownership right though the assessee is described as owner in this case, we find that the Assessing Officer had made no effort to find out whether the particular property was vacant, during year under consideration. Under these facts, we do not see any reason to sustain the finding of authorities below. Hence, the Assessing Officer is directed to delete the addition made on account of presumed income received from M/s. Prabh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal thereby the ld. CIT(A) sustained the addition to the extent of ₹ 23,85,738/- out of addition of ₹ 32,32,404/-. 4. The only effective ground is against confirmation of addition of ₹ 23,85,738/-. Ld. Counsel for the assessee vehemently argued that the authorities below were not justified in making addition and confirming the same. Ld. Counsel for the assessee submitted that the impugned income was neither accrued to nor received by the assessee. Therefore, the authorities below were unjustified to make addition. Ld. Counsel for the assessee drew our attention to paper book page nos. 115 116, wherein the letter from VFS (India) Pvt. Ltd. is enclosed. As perthis letter, the agreement with appellant was with regard to service provider the period as given in the letter is 31.05.2003 to 06-2006, 01.05.2003 to 01.2005 and 08.09.2003 to 06.2005. Ld. Counsel also drew our attention to the letter from VFS (India) Pvt. Ltd. at page no.9 of the paper book, wherein a certificate is enclosed stating therein that all services/rent agreements with the assessee was terminated on or before 1st April, 2004 and there was no payment released to the assessee after this date. Ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v KrishnaveniAmmal, (1986) 158 ITR 826, 829, 830 (Mad)]. 5.6. The income as computed based on the agreements have accrued to the assessee during the F.Y 2004-05 irrespective of the fact that she has not received the same as claimed by her. She was supposed to declare the same in her return of income on accrual basis. However, the assessee has not declared such income. The income of ₹ 32,32,404/- as computed above is hereby added to the total income of the assessee as undisclosed income. Penalty proceedings U/s 271(l)(c) of the Income Tax Actare initiated for concealing true particulars of income . 6. However, ld. CIT(A) after considering the submission decided the issue in para 6 7 of his order as under: 6. I have considered the submissions of the Authorized Representative and the order of the Assessing Officer. With regard to Multi Plastic Services Pvt. Ltd., the appellant has not declared any income and the company has categorically stated that the payments have been made in financial year 2003-04 only. Since there is no other evidence on record and no agreement existed, the addition made My the Assessing Officer of ₹ 66,750/- is deleted. With reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thersince there is no evidence of rent received either as per anyagreement or any other source there was no justification for the Assessing Officer to have made the addition of ₹ 6,47,142/-. The addition is directed to be deleted. 7. The Assessing Officer has made an addition of ₹ 58,500/- said to have been received from Prabhat Automation as rent from property based at Sakinaka. My learned predecessor has held that the appellant is the owner of this property. No evidence has been filed that the property is lying vacant. The conclusion of the Assessing Officer is justified and the addition of ₹ 58,500/- is confirmed. The appellant gets a relief of ₹ 8,46,666/-. The balance of ₹ 23,85,738/-. 7. As per the assessee, the contracts were terminated before the expiry of the contract period. The assessee had not received any payment towards the services rendered nor the income was accrued to the assessee during the year under consideration. Under these facts, the authorities below were totally unjustified for making addition. There is no dispute with regard to the fact that the assessee entered into various agreements with the parties as mentioned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l for the assessee drew our attention to the cancellation of agreement between M/s. Kuoni travels (India) Pvt. Ltd. at paper book page 10. The cancellation of agreement dated 1st April, 2004 is made. As per this cancellation, agreement dated 31.01.2003 was terminated with immediate effect meaning thereby there was no contract existing between the parties post 1st April 2004. As per this cancellation, agreement amount of ₹ 15,50,000/- was to be refunded. The contention of the assessee is that this amount of ₹ 15,50,000/- was duly offered as income in the preceding year. The authorities below have construed the terms of the cancellation of agreement that the assessee was in receipt of the charge till October, 2005. However, the authorities below have not verified the factum of payment through M/s. Kuoni travels (India) Pvt. Ltd. Under these facts and the term of contract is clear that contract was terminated with immediate effect. However, the same term states that all amounts received under the agreement for services rendered till 14.10.2005 has been duly received and no amount is outstanding as on date of this agreement. As per this term, if it is to be read completely, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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