TaxTMI 
TaxTMI 
2001 (8) TMI 47
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.... the affairs of the assessee were not real or genuine or were sham and make believe or a colourable device or that the assessee had resorted to any dubious method or subterfuge are based on any material and whether such conclusion is otherwise unreasonable and perverse?" The petitioner is a public limited company within the meaning of the Companies Act, 1956. The relevant assessment year is 1991-92 for which the year ending is March 31, 1991. The system of accounting is mercantile. The assessee is an investment company and used to carry on the business, inter alia, of financing and dealing in shares sector. During the financial year 1985-86, this company took up a building construction project as a business venture. The company purchased....
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....ook the view that the loss or profit shall be further subject to reassessment after the receipt of the valuation report. In appeal before the Commissioner of Income-tax (Appeals), the Commissioner of Income-tax (Appeals) has allowed the loss claimed by the assessee. In the appeal before the Tribunal, the Tribunal has reversed the view taken by the Commissioner of Income-tax (Appeals). From the perusal of record it appears that the assessee has incurred the expenditure on the construction as under: -------------------------------------------------------------------------  ....
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....0 4,87,417.36 (v) Financial year 1990-91 3,54,425.75 &nbs....
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.... be considered as 'stock-in-trade' of the company and the same for income-tax purposes in the same manner. The Assessing Officer has nowhere stated in the case of rejecting the accounts of the appellant, that the appellant has neither inflated the expenses relating to the execution of the project on the one hand, and on the other, the appellant has understated or suppressed the sale value of the flats inasmuch as this is the basic requirement of applying section 145 when it has been established that the accounts have been prepared in such a manner that they cannot be relied upon. There is no material or evidence shown in the assessment order or brought on record to prove that the accounts are not reliable or they suffer from some defects....
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.... the issue whether capital gain can be estimated and judicial notice of rising prices can be taken. This court has taken judicial notice of the rise in the prices and held that the Tribunal was fully justified in coming to the conclusion of the fact that as there was a rise in the price of landed properties that was a cogent piece of evidence which the Tribunal was entitled to consider in arriving at its own estimate of capital gains of the Russa Road Property. The capital gains firstly is not issue before us, secondly this issue has been concluded by the Supreme Court in the case of K.P. Varghese v. ITO [1981] 131 ITR 597, wherein their Lordships have taken the view that for assessing the capital gains the consideration disclosed on the....