TaxTMI 
TaxTMI 
TaxTMI 
2020 (2) TMI 845
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....nd in law, the Hon'ble ITAT erred in upholding the order passed by the Ld. CIT(A) without considering the effect of the provisions of Section 292C of the I.T. Act?" 3. The following questions of law are proposed as substantial questions of law in Tax Appeal No.804 of 2019 arising out of appeal filed by Revenue before the Tribunal being ITA No.1730/Ahd/2014: "(a) Whether on the facts and circumstances of the case and in law, the Hon'ble ITAT erred in upholding the order passed by the Ld. CIT(A) in respect of addition made on account of unaccounted loan and advances and interest of Rs. 4,82,56,000/­ by accepting the explanation of the assessee? (b) Whether on the facts and circumstances of the case and in law, the Hon'ble ITAT erred in upholding the order passed by the Ld. CIT(A) in respect of addition made on account of unaccounted income of Rs. 1,50,000/­ by accepting the explanation of the assessee? (c) Whether on the facts and circumstances of the case and in law, the Hon'ble ITAT erred in upholding the order passed by the Ld. CIT(A) in respect of additions made on account of unaccounted income of Rs. 12,63,96,132/­ and on account of receipt of ....
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....(Rs.) 1 On account profit earned in the year form unaccounted receipts 86,44,340 2 On account of unaccounted income 4,82,56,000 3 On account of unaccounted income 5,72,000 4 On account of unaccounted income 1,50,000 5 On account of unaccounted income 12,6396,132 6 On account of unaccounted on­money receipts 40,27,600 7 On account of unaccouned expenditure u/s 69C of the Act 97,24,958 8 On account of unaccounted income 34,82,000 9 On account of unaccounted income 1,43,60,000 10 On account of unaccounted income 5,43,49,000 6. The assessee being aggrieved filed appeal filed before the CIT(A). The CIT(A) by order dated 26th March 2014 confirmed the additions of Rs. 86,44,340/­ pertaining to profit earned in the year from unaccounted receipts and Rs. 5,72,000/­ pertaining to unaccounted income. The CIT(A) granted relief to the assessee as under: Sr.No. Nature of addition Amount (Rs.) Addition confirmed / deleted by CIT(A) 1 On account of profit earned in the year form unaccounted receipts 86,44,340 Confirmed 2 On account of unaccounted income 4,82,56,000 Deleted 3 On account of unaccounted income 5,72,000 Confirmed ....
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....rc;eld (P) Ltd. [2009] 121 'ITJH (Delhí) 208 and decision of Hon'ble Gujarat High Court in the case of Hiren Vasantlal Shah [2012] 19 taxmann.com 241 (Gujarat) wherein it was held as under: "It was held that section 292C of the Income­tax Act, 1961 Presumption as to assets, books of account, etc. Pursuant to a search at assessee's premises, certain documents were found and one of such documents contained working of interest at rate of 3 per cent on total sum of Rs. 3 Iakh Assessee was directed to explain contents of document found during course of search Assessee explained that contents of said document were rough working and no loan was given out Assessing Officer rejected assessee's explanation ­ Whether on basis of material recovered during search, lower authorities had rightly drawn presumption in terms of section 292C Held, yes Whether, therefore, impugned addition was to be confirmed Held, yes [In favour of revenue]" 17. Since the incriminating documents was recovered from the premises of the assessee, therefore, we find no reason to draw adverse inference in the finding recorded by the lower authorities, accordingly same is confirmed. However, the addition....
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....able has been found as blank. Further, six persons mentioned in the chart have denied to have done any financial transactions with the assessee. The AO has wrongly treated these as loans given whereas the list / chart indicates probable lenders. We Find that the AO has not brought on record anything contrary to the submissions made by the assessee. Therefore, in such circumstances, we do not find any infirmity in the order of CIT(A), accordingly, same is upheld. This ground of appeal of revenue is therefore, dismissed." ● Question [b]: Whether on the facts and circumstances of the case and in law, the Hon'ble ITAT erred in upholding the order passed by the Ld. CIT(A) in respect of addition made on account unaccounted income of Rs. 1,50,00,000/­ by accepting the explanation of the assessee? "We have heard the rival submissions and perused the relevant material on record. We find that BF­2 Page No. 40 reflected 10 number cheques of Rs. 15 Lakh each in respect of Five person. These cheques were pertaining to Bhavnagar District Co­operative Bank Ltd. with whom the assessee, nor any of his family members were having any bank account. Further, such cheques were ....
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....ing no connection with his society. He is neither member nor holding any plot in Sarjan society. He do not know as to how the papers of Sarajn were found during survey at the premises of Ghanshyam D Sutariya. The Other members from whom information was collected under section 133(6) also denied knowing the appellant or having any type of financial transactions with the appellant. In view of these facts, the CIT(A) observed that the appellant has in no way associated with Sarjan Co­operative Society. Having careful consideration of above facts, we are of the considered opinion there was no corroborating evidences on record, which suggested that the transactions, were related to in any manner with the assessee. In view of these facts and circumstances, we are of the considered view that Ld. CIT(A) was not in error in deleting the addition so made by the AO. Therefore, this grounds of appeal of revenue is accordingly, dismissed." ● Question [d]: Whether on the facts and circumstances of the case and in law, the Hon'ble ITAT erred in upholding the order passed by the Ld. CIT(A) and dismissing the appeal filed by the Revenue in respect of addition made on account of unex....
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....een reproduced by the ld.CIT(A) in para No.6.8.4, as reproduced above. Accordingly, the total payments by buyers was computed at Rs. 74,66,000/­ and interest compensation to buyers was computed at Rs. 60,20,000/­ aggregating to Rs. 1,34,86,000/­. The ld.CIT(A) has also considered and decoded the amount mentioned in respect of these plots, considered and cited specific example in respect of Plot No.86 the amount which was written in coded figures and arrived at a correct figure of which working is given in Para 6.8.5 of his order as reproduced in this appellate order above. Thus, considering the totality of the facts and details entries pertaining to each plot recorded in the impounded document showed that the assessee has sold 10 plots to various 10 buyers and had received a sum of Rs. 74,66,000/as advanced towards the sale of plot. It is further noticed that the assessee has paid simple interest @2% per month on the amount deposited by the buyer which has been calculated at Rs. 60,20,000/­ by the Ld. CIT(A). Thus, the total amount returned back to the various buyers has been worked out at Rs. 1,34,86,000/­[ 74,66,000 + 60,20,000] which included the interest as ....
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....m of cash flow fund out of which, how much amount can be telescoped by way of these payments. Therefore, this ground is set­aside for limited verification. Accordingly, this ground of the assessee is dismissed with limited verification and ground No.5 of the Revenue is dismissed." 13. With regard to above questions, as the Tribunal on the basis of the materials produced before it and after analysing the same has arrived at finding of fact, no interference is warranted. As there are concurrent finding of fact by both the authorities, none of the questions of law being questions No.[a] to [e] can be termed as substantial questions of law, the appeal stands dismissed. 14. As regards to questions Nos.[f] is concerned, the same pertains to application of Section 292C of the Act, 1961 and perversity in the order of the Tribunal. As the Tribunal has, in fact, confirmed the application of Section 292C of the Act, 1961 invoked by the CIT(A), question No.[f] does not arise from the impugned order of the Tribunal. 15. As regard to question No.[g], the Tribunal has arrived at finding of fact on the basis of the materials placed before it, there is nothing on record to come to the conclu....