TaxTMI 
TaxTMI 
2016 (10) TMI 97
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....e Revenue before it. 2. The substantial questions of law that have been raised for consideration in this appeal are as follows: "(i) Whether on the facts and circumstances of the case, the order of the ITAT is not perverse in law ? and (ii) Whether on the facts and circumstances of the case, the ITAT in the absence of tangible materials was right in confirming double addition made to the sum of Rs. 15 lakhs over and above the income offered and taxable under any of the provisions of the Income Tax Act ?" 3. For the assessment year 2008-2009, the assessee, who was a dealer of pharmaceuticals, has filed Return in respect of his total income of Rs. 12,24,423/-. However, on 27.02.2008, survey operations were carried out ....
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....t maintaining cash book in the answer to Q.No.5 considered the sales of Rs. 9,23,01,893/- during the current years as on date, as per your computer and in the absence of account books, how are you going to prepare a/c books ? Ans: In the absence of regular a/c books, as well as primary documents for the preparation of accounts I may not be able to draw proper a/cs and arrive at current income. Hence I am offering voluntarily Rs. 15,00,000/- (Rupees fifteen lakhs only) as income over and above the regular income and pay tax on this sum." 4. From the above statement, it is more than clear that the assessee has offered voluntarily Rs. 15 lakhs as income over and above the regular income. But however, he has booked certain expenditu....
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....crediting these monies to the capital account and thus were brought to tax. Having been established that books of accounts were not maintained regularly and the additional incomes were brought to tax, it would not be fair to go into each and every item of expenditure debited to the P&L account, especially an estimated amount is admitted as additional incomes. In a sense where the additional incomes over and above the regular income were offered, the AO cannot go into the details of the expenditures as book results gets submerged under the provisions of S.145. Hence the additions cannot be sustained." 6. Hence, the Revenue went before the Income Tax Appellate Tribunal, which by its order, dated 12.02.2014, allowed the appeal of the Revenu....
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....ntarily is in respect of filing Return with regard to Rs. 15 lakhs over and above the regular income. This is the reason why, to ascertain the quantum of regular income, normally that can be expected in respect of the Return filed by an assessee for the relevant assessment year, the assessing officer will look into the Returns of the immediately preceding four years period. From that, it has emerged that the gross turnover for the four preceding years, was shown to the tune of Rs. 3,44,27,963/-, Rs. 4,24,67,070/-, Rs. 5,79,89,402/- and Rs. 8,12,36,798/-. As against this, for the assessment year 2008-2009, the assessee has reported the gross turnover of Rs. 9,71,88,656/-. It is no doubt true that there was consistently considerable quantum o....
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....isters maintained by the assessee with regard to the cash payments made. Therefore, the finding of the assessing officer is that there are no proper books of accounts maintained by the assessee and hence, it is not possible to infer that he has legitimately expended and claimed the expenditure in cash, particularly after the survey operations were carried out on 27.02.2008. In those set of circumstances, the Income Tax Appellate Tribunal has reversed that portion of the order of the CIT (Appeals) and restored the order of the assessing officer. The learned counsel for the appellant/assessee submitted that the finding of the Income Tax Appellate Tribunal is patently perverse and hence it calls for interference at our hands. 13. Perversity....