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TMI Blog2020 (2) TMI 850X X X X Extracts X X X X X X X X Extracts X X X X ..... the sum so credited, in terms of such credit, is sought to be brought to tax as the income of the appellant-assessee, for the assessment year 2009-10, which means for the previous year 2008- 09, in terms of the definition under Section 3 of the IT Act. Dr. Daniel is justified in submitting that this is not permissible. M/s Bhor Industries Limited Vs. Commissioner of Income Tax, Bombay [ 1961 (1) TMI 10 - SUPREME COURT] the Hon'ble Apex Court in the context of provisions of the Merged States (Taxation Concessions) Order (1949) has interpreted the expression any previous year to mean as not referring to all the previous years, but, the previous year in relation to the assessment year concerned. Again, this decisions also, to s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowance of only 10%, in the present case. There is neither any unreasonability nor any perversity in the approach or the findings of these authorities so as to warrant interference. - Decided against assessee - TAX APPEAL NO. 29 OF 2013 - - - Dated:- 14-2-2020 - M.S. SONAK SMT. M.S. JAWALKAR, JJ. Dr. P. Daniel with Ms. Yadika Mandrekar, Advocates for the Appellant. Ms. Susan Linhares, Standing Counsel for the Respondents. ORAL JUDGMENT: (Per M. S. Sonak, J.) Heard Dr. Daniel with Ms. Y. Mandrekar, the learned Counsel for the appellant-assessee and Ms. Susan Linhares, the learned Standing Counsel for the respondent-Revenue. 2. On 02.12.2013, this Appeal came to be Admitted on the following substantial ques ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment year 2009-10 and the corresponding previous year 2008-09. He submits that on this short ground, the first substantial question of law, is liable to be answered in favour of the appellant-assessee and against the respondent-Revenue. 4. Insofar as the second and third substantial questions of law are concerned, Dr. Daniel is quite correct in pointing out that both these substantial questions of law relate to one and the same issue of adhoc disallowance of labour charges to the extent of ₹26,54,158/-. He submits that in the present case, disallowance is only on the basis of some suspicion, which is backed by no material as such. He submits that the disallowance is also based upon the failure on the part of the appellant-assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oses of the IT Act, previous year means the financial year immediately preceding the assessment year. 8. Thereafter, reference is necessary to the provisions of Section 68 of the IT Act, which read as follows: Cash credits. 68. Where any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the sum so credited may be charged to income-tax as the income of the assessee of that previous year: Provided that where the assessee is a company (not being a company in which the public are substantially interested), and the sum so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der Section 3 of the IT Act. Dr. Daniel is justified in submitting that this is not permissible. 11. The view taken by this Court in Commissioner of Income-Tax, Poona Vs. Bhaichand H. Gandhi, 141 ITR 67 and by Rajasthan High Court in Commissioner of Income-Tax, Rajasthan Vs. Lakshman Swaroop Gupta Brothers, 100 ITR 222 , supports the contentions raised by Dr. Daniel. Similarly, we find that in M /s Bhor Industries Limited Vs. Commissioner of Income Tax, Bombay, AIR 1961 SC 1100, the Hon'ble Apex Court in the context of provisions of the Merged States (Taxation Concessions) Order (1949) has interpreted the expression any previous year to mean as not referring to all the previous years, but, the previous year in relation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -Tax, 184 ITR 404, the Allahabad High Court has no doubt held that an admission or an acquiescence cannot be the foundation for an assessment, where the income is returned under an erroneous impression or misconception of law. In the present case, the foundation of the assessment order cannot be said to be an admission or an acquiescence on the part of the assessee. The circumstance that in the preceding year that the appellant has not allowed disallowance, is only one of the considerations taken into account by the Assessing Officer. 16. In Laxmi Engineering Industries Vs. Income-Tax Officer, [2008] 298 ITR 203 (Raj) and J.K. Woollen Manufacturers Vs. Commissioner of Income-Tax, U.P., 72 ITR 612, it is held that disallowance shoul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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