9911796707
TMI Blog2021 (11) TMI 504X X X X Extracts X X X X X X X X Extracts X X X X ..... e event of undisclosed income, if the books are not available or the books are destroyed or there is suppression of actual sales, taking into consideration the totality of the circumstances, it is open to the Assessing Authority to estimate the income of the assessee. No reasons to differ from this dictum pronounced by the Co-ordinate Bench. The said ruling being squarely applicable to the facts of the present case, we answer the substantial question of law No.1 in favour of the assessee and against the Revenue. Addition of bogus expenditures - undisclosed payment of development charges to M/s. JAIC - Tribunal deleted the addition - HELD THAT:- To establish the factum that assessee said to have been incurred as expenditure towards the development charges, the assessee has placed the material evidence by producing necessary documents as per the profit and loss account of the assessee and profit and loss accounts of the JAIC with break-up figures which were made available before the Authorities as well as the Tribunal. The Tribunal having considered these factual aspects, has allowed the appeal of the assessee rejecting the Revenue s appeal. These issues being related to pure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in deleting the addition made by assessing authority with regard to bogus expenditure on lands by holding that the sister concern of the assessee namely, M/s. Jansons Architectural and Interior Consultants Bangalore [JAIL] has offered to tax to the above expenditure as its income without considering the issue that whether the said expenditure claimed by assessee on lands is bogus or not by also ignoring the fact that assessing authority had verified the books of account of sister concern which was reproduced in the assessment order and as such the order passed by Tribunal is perverse in nature? 5. This is the second round of litigation inasmuch as the issues involved herein are concerned. The assessee is a company and carrying on business of real estate. Pursuant to the search action conducted on 24.01.2001 in the premises of the assessee as well as at the residents of the Directors of the company, some incriminating materials were seized from the premises of the assessee. After conclusion of search operation, proceedings were initiated under Section 158BC of the Act and called upon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the unexplained investments in lands of Buttahanahalli amounting to ₹ 82,86,250/-. The Assessing Officer observing that the registered sale deeds and the agreements to sell with respect to the lands measuring 16 acres 6 guntas not recorded in the books, made addition of ₹ 33,98,250/- extrapolating the rate from the agreement to sell and further applied the same to the balance lands measuring 20 acres 31 guntas thereby making further addition of ₹ 50,64,555/- placing reliance on the statement of some of the farmers recorded. The Commissioner of Income Tax [Appeals] has confirmed the same. The Tribunal has observed that the Assessing Officer has failed to follow the directions issued by the Tribunal in the first round; no opportunity was given to the assessee to cross-examine the farmers whose statements were relied upon. Placing reliance on the ruling of the Hon ble Apex Court in the case of Andaman Timber Industries V/s. CCE [(2015) 62 taxmann.com 3 (SC)], the Tribunal held that addition is not sustainable. 10. With respect to the addition based on the extrapolated data, the Co-ordinate Bench of this Court in the case of Commissioner of Income-Tax, Bang ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is: the action of assessing; the amount assessed; the determination of the amount of taxation; the scheme of charge or taxation; valuation of property or income for the purpose of taxation. The word assess is a comprehensive word, and in a taxing statute it often means the computation of the income of the assessee, the determination of the tax payable by him, and the procedure for collecting or recovering the tax. The term assessment is flexible capable of one of many meanings. It will take its colour from the context in which it occurs. It bears a very comprehensive meaning, it can comprehend the whole procedure for ascertaining the imposing liability upon the taxpayer. Therefore, under Section 158BB the assessing authority has to compute the undisclosed income falling within the block period. He is not expected to assess the undisclosed income. It is only in the event of assessment of undisclosed income, if accounts books are not available, if accounts books are destroyed, if there is a suppression of actual sales, taking into consideration the totality of the circumstances, the conduct of the parties, the way in which the accounts are maintained and the incriminating mat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0/- from the bogus expenditure claimed by the assessee which has been denied and addition has been made. The Tribunal grossly erred in deleting the additions made by the Authority without any valid basis. 14. Learned senior counsel appearing for the assessee has placed the material before the Court to contend that the Assessing Officer in the first round before the Tribunal, has placed the details for the land development charges for the year ending 31.03.1998, 31.03.1999, 31.03.2000. In the said statement, receipts relating to Nandigunda Project, the amount received by the Jansons Investments P. Ltd., were shown as ₹ 10,00,000/- as on 31.03.1998. The amount paid by the assessee to the Jansons Architectural and Interior Consultants Bangalorei.e., JAIC is only ₹ 10,00,000/- that was reflected in the profit and loss account of the assessee and the same tallies with the details of land development charges and contract receipts of M/s. JAIC, the copies of the same are placed before us in support of his submissions. It is further submitted that the same has been clarified by the Commissioner of Income Tax [Appeals] in his order dated 30.01.2014. Thus, the amount paid b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ari Jan and Iffath Maab 1998-99 60,03,742 Janson Investment Pvt. Ltd., 1998-99 10,00,000 Pyari Jan 1999-2000 2,32,108 Pyari Jan 2000-01 19,64,350 18. However, the Assessing Officer and the Commissioner of Income Tax [Appeals] proceeded on the footing that the accounts of JAIC do not show any amounts received from the assessee-company for the Gooliyanandagunda village project. It is trite that if any expenditure is made by M/s. Pyari Jan and Iffath Maab to the extent of ₹ 82,00,200/- as observed by the Commissioner of Income Tax [Appeals], no fault can be found with the assessee, making addition of ₹ 92,00,000/- in the hands of the assessee treating the same as bogus expenditure when the said M/s. Pyari Jan and Iffath Maab are the assessees under the provisions of the Act and returns were filed by them. To establish the factum of ₹ 10,00,000/- said to have been incurred as expenditure towards the development charges, the assessee has ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
