TaxTMI 
TaxTMI 
2019 (4) TMI 408
X X X X Extracts X X X X
X X X X Extracts X X X X
....ee's premises at 'Shankar Leela Kalyana Mantapa' at Davangere on 30.12.1999; wherein certain notebooks containing entries about receipts and payments of the aforesaid Drama Company were recorded, were found and impounded. Pursuant thereto, the Assessing Officer (AO) on the basis of findings in the course of survey initiated proceedings under section 147 of the Act as he had reason to believe that income of the assessee, liable to tax had escaped assessment for Assessment Years 199596 to 1998-99 and after recording reasons in this regard, issued notices under section 148 of the Act on 03.02.2000 to the assessee for these four assessment years. The assessments for these Assessment Years 1995-96 to 1998-99 were concluded under section 143(3) r.w.s. 147 of the Act on the basis of material impounded in the course of survey proceedings; vide separate orders dated 27.03.2002 as under: Assessment Year Income Returned (Rs.) Date of filing of return of Income Annual income (Rs.) 1995-96 74,800/- 05.03.1998 6,33,434/- 1996-97 (-)44,940/- 05.03.1998 19,46,531/- 1997-98 1,42,950/- 05.03.1998 22,18,942/- 1998-99 69,600/- 21,59,82....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o the same. The assessments for Assessment Years 1995-96 to 1998-99 were completed under section 143(3) r.w.s. 147 and 260A of the Act vide orders dated 27.03.2008 wherein the assessed income was determined as under: Assessment Year Income Returned (Rs.) Income assessed (Rs.) 1995-96 74,800/- 2,58,360/- 1996-97 (-)44,940/- 6,39,831/- 1997-98 1,42,950/- 18,05,639/- 1998-99 69,600/- 13,73,289/- 2.4 Aggrieved by the orders of assessment dated 27.03.2008 for Assessment Years 1995-96 to 1998-99, the assessee filed appeals before the CIT-4, Bangalore. The CIT(A) disposed off the assessee's appeals for these 4 years vide order dated 27.09.2018 allowing the assessee partial relief; the details of which are as under: A. Income from KBR Drama Company sustained to the extent of 50% of income assessed by AO: Assessment Year Assessed by AO (Rs.) Addition sustained by CIT(A) to the extent of 50% (Rs.) 1995-96 NIL NA 1996-97 4,11,831/- 2,05,916/- 1997-98 13,02,689/- 6,51,344/- 1998-99 10,91,689/- 5,45,845/- B. Receipts from Kalyana Mantapa was sustained to the extent of 30% of receipts determined by....
X X X X Extracts X X X X
X X X X Extracts X X X X
....een upheld by the Hon'ble Apex Court in the case of Anjum H. Ghaswala (252 ITR 1) (SC) and I, therefore, uphold the action of the AO in charging the assessee the aforesaid interest u/s 234B of the Act. The AO is, however, directed to re-compute the interest chargeable u/s 234B of the Act, if any, while giving effect of this order. 6. Ground No. 4 for Assessment Year 1996-97 to 1998-99 - Income from KBR Company 6.1 In support of the grounds raised on this issue (supra), the learned AR for the assessee submits that the gross receipts as per the profit and loss accounts filed by the assessee, exceeds the total amount as per the impounded material and there is no suppression of turnover in Assessment Years 1996-97, 1997-98 and 1998-99. The learned AR further submitted that only a portion of the actual expenses are noted in the material impounded in the course of survey and the same does not cover all expenses. According to the learned AR, if only the expenses, which are partly recorded in the impounded material were to be considered against the actual expenses incurred, the same would lead to absurd results. The additions made by the AO, by considering the impounded material alon....
X X X X Extracts X X X X
X X X X Extracts X X X X
....5.4 thereof had come to the conclusion that no addition was called for on this issue. This finding of the Tribunal has not been controverted by the authorities below i.e., by the CIT(A); while sustaining the addition made at on adhoc figure of 50%; as being the earnings of the drama company. In view of the peculiar facts and circumstances of the case and in the absence of any comparable case put forth by the authorities below, the additions, even to the adhoc extent upheld by the CIT(A) cannot be justified. In this view of the matter, I delete the additions sustained by the CIT(A) on account of income from drama company for Assessment Years 1996-97, 1997-98 and 1998-99. Consequently, ground No.4 raised in assessee's appeal for these Assessment Years is allowed. 7. Ground No.4 for Assessment Year 1995-96 Ground No. 5 for Assessment Years 1996-97 to 1998-99 - Income from Kalyana Mantapa 7.1 On the issue of additions on account of Kalyana Mantapa (i.e., income from house property), the learned AR submitted that at para 24 and 25 of the impugned order, the CIT(A) has rendered a categorical finding that the receipts / donations of the Kalyana Mantapa are received by a Temple Co....
X X X X Extracts X X X X
X X X X Extracts X X X X
....de letter dated 05.11.2007; which were communicated to the assessee by the AO vide letter dated 12.02.2008. It is a matter of record that the assessee has not raised any objections in this regard. In the light of the above facts, it is evident that the AO has correctly and validly assumed jurisdiction under section 147 of the Act for commencing proceedings for assessments for Assessment Years 1995-96 to 1998-99. Though raised by the assessee, it is seen that there is no violation of the provisions contained in section 151 of the Act. In view of the above and finding no merit in this ground No. 2 raised by the assessee (supra), the same is accordingly dismissed. 9. In the result, the assessee's appeals for Assessment Years 1995-96 to 1998-99 are partly allowed. Order pronounced in the open court on this 8th day of February, 2019. ============= Document 1 SI. No. 1. a. 2. GROUNDS OF APPEAL The orders of the authorities below in so far as they are against the Appellant, are opposed to law, weight of evidence, natural justice, probabilities, facts and circumstances of the Appellant's case. b. The appellant denies to be assessed on a total income of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....c. The authorities below failed to appreciate that receipts from Kalyana Mantapa is towards maintenance of the Temple and the same were not utilised by the appellant for her personal purpose under the facts and circumstances of the case. d. The authorities below failed to appreciate that the rental receipts from the Kalyana Mantap as 'Devara Sevege Denege' which means 'Donation for God's Service' and the same were utilised for maintenance of Temple and Kalyana Mantap under the facts and circumstances of the case. Without prejudice, the addition confirmed by the learned CIT(A) is highly excessive and needs to be substantially reduced under the facts and circumstances of the case. The appellant denies itself liable to be levied to interest under sections 234A and 234B of the Act and further the computation of interest was not provided to the appellant as regard to the rate, period and method of calculation of interest under the facts and circumstances of the case. The appellant expressly urges that the period of levy of interest is not in accordance with sections 234A and 234B of the Act. 82,366/- 26,208/- 5,49,533/- Docume....