TaxTMI 
TaxTMI 
2017 (1) TMI 1104
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....and on facts in holding that addition of Rs. 14,68,470/has wrongly been made as peak of bank account has been considered as undisclosed income covered by the period of Settlement Commission order? (C) Whether the Appellate Tribunal is right in law and on facts in deleting the addition of Rs. 1 crore and Rs. 38,95,600/for A.Y 199596 and 199697 respectively in respect of unaccounted cash payment made by the assessee in respect of booking of plot in Radhe Acre Scheme? (D) Whether the Appellate Tribunal is right in law and on facts in deleting the addition of Rs. 1,68,70,889/for A.Y 199596 which was made on account of unexplained investment in unexplained bank accounts peak balance? (E) Whether the Appellate Tribunal is right i law and on facts in deleting the addition of Rs. 4,51,500/for A.Y 199697 in respect of unaccounted cash receipt on premium on transfer of booking of plot No. 181 in Radhe Acre II? (F) Whether the Appellate Tribunal is right in law and on facts in deleting by giving benefit of telescoping in respect of addition of Rs. 10 lakhs and Rs. 14,36,000/for A.Y 199495 and 199596 respectively, made in respect of unaccounted investment in application and allotme....
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....n 16.10.1995 in the case of the assessee. In the course of search a large number of books of accounts and loose papers were seized from share certificates having face value of Rs. 40,66,670/. In the course of search the statements of the assessee were recorded on different dates ranging between 29.09.1995 to 18.10.1995. In the statement recorded on 30.10.1995, the assessee admitted to have concealed total income of Rs. 1,43,00,000/. [2.3] Subsequent to search and seizure action a notice dated 23.04.1996 was issued to the assessee requesting him to file the return of his total income including undisclosed income in respect of the block period. That the assessee admitted of having maintained 32 undisclosed bank accounts which are stated to be utilized for making sale / purchase of investments in various shares and other assets. The block return filed by the assessee contained undisclosed income declared on the basis of the assets / investments / payment found and detected at the time of search. However, while passing the assessment order the AO apart from making additions on the basis of assets / investments / payments found and detected during the course of search also added peak....
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....ed cash payment made by the assessee in respect of booking of plot in Radhe Acre Scheme; (3) the addition of Rs. 1,68,70,889/for Assessment Year 199596 which was made on account of unexplained investment in unexplained bank accounts peak balance; (4) the addition of Rs. 4,51,500/for Assessment Year 199697 in respect of unaccounted cash receipt on premium on transfer of booking of plot No.181 in Radhe Acre II; (5) the benefit of telescoping in respect of addition of Rs. 10 lakhs and Rs. 14,36,000/for Assessment Year 199495 and 199596 respectively, made in respect of unaccounted investment in application and allotment as well as profit on sale of shares of Niko Set Ltd. and (6) the addition of Rs. 61,54,735/made in respect of unexplained cash payment of Shri Girish P. Ruparel in lieu of entry from Reliable Finstock Services Ltd. That by giving cogent reasons the learned ITAT considered the period of 60 days while accounting and considering the peak balance. [2.5] Feeling aggrieved and dissatisfied with the impugned judgment and order passed by the learned ITAT, the Revenue has preferred the present Tax Appeal raising the following substantial questions of law for the determination....
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.... tax is concerned, the said question is squarely covered against the Revenue in view of the decision of the Hon'ble Supreme Court in the case of Commissioner of InocmeTax vs. Pawan Kumar Laddha reported in 324 ITR 324 (SC). The aforesaid is not disputed by the learned Counsel appearing on behalf of the Revenue. Under the circumstances, question No.(A) is answered in favour of the assessee and against the Revenue. [3.1] Now, so far as rest of the question Nos.(B) to (H) are concerned, for the sake of convenience the relevant paragraphs in the assessment order as well as the order passed by the learned ITAT are required to be considered in tabular form so that it will be easier and convenient to consider the aforesaid questions. No. Question Para Nos. of AO Para Nos. of ITAT B Whether the Appellate Tribunal is right in law and on facts in holding the addition of Rs. 14,68,470/has wrongly been made as peak of bank account has been considered as undisclosed income covered by the period of Settlement Commission Order? 17 to 32 268-272 C Whether the Appellate Tribunal is right in law and on facts in deleting the addition of Rs. 1 crore and Rs. 38,95,600/f....
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....Commission has attained the finality. Therefore, considering Section 245F of the IT Act, when the order passed by the Settlement Commission has attained finality, the Assessing Officer was not justified in making the addition of Rs. 14,68,470/, which has rightly been set aside by the learned Tribunal. After considering the observations made by the Settlement Commission which has been reproduced by the learned Tribunal in para 16, we are in complete agreement with the view taken by the learned Tribunal. No error has been committed by the learned Tribunal in holding so and in deleting the addition of Rs. 14,68,470/treating it as undisclosed income. Under the circumstances, the aforesaid question No.B is answered against the Revenue and in favour of the assessee. [4.1] Now, so far as the proposed question No.C i.e. whether the Appellate Tribunal is right in law and on facts in deleting the addition of Rs. 1 Crore and Rs. 38,98,600/for AY 199596 and AY 199697 respectively in respect of unaccounted cash payment made by the assessee in respect of booking of the plot in Radhe Acre Scheme is concerned, learned Tribunal has discussed the same in detail and in extensor in paras 25 to 45. ....
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....ee, we confirm the order passed by the learned Tribunal deleting the same. Therefore, the proposed question No.C is answered against the Revenue and in favour of the assessee. [5.1] Now, so far as the proposed question Nos.D and H are concerned, both these questions are interconnected. It appears that while making the addition of Rs. 1,68,70,889/for AY 199596 which was made on unaccounted investment in unexplained bank account peak balance, the Assessing Officer applied 120 days' rotation period against the case of assessee to consider 45 days' rotation period. That by giving cogent reasons in paras 5o to 61, the learned Tribunal considered 60 days' rotation period. While considering period of 60 days for rotation of funds, for working the peak, the learned Tribunal considered the observations made by the Settlement Commission. It is required to be noted that as such according to the assessee the period of 45 days for rotation of the funds was required to be considered for working the peak, however the learned Tribunal has not accepted the same and has considered the period of 60 days for rotation of funds for working the peak. While holding so the learned Tribunal has considere....