TaxTMI 
TaxTMI 
2009 (1) TMI 92
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...., was the Appellate Tribunal right in deleting the addition of Rs.2,26,78,400/- on account capital gains which had not been offered to tax by the assessee in regular returns of income? (B) Whether on the facts and in law, was the Appellate Tribunal right in allowing the appeals of assessee about undisclosed Capital Gain treated as unaccounted initial payment for Rs.1,07,17,950/- on the basis of interpretation of the only part of entries on the seized documents recording payment by cheque and ignoring the remaining part recording unaccounted cash transaction?" 4. Tax Appeal No.1195 of 2008 arises out of order dated 07-12-2007 made by the Tribunal in IT(SS)A No.338/Ahd/2004 for block period assessment related to P.Y.1996-97 to 2001-2002 and upto 17-07-2002, filed by the assessee. Tax Appeal No.1196 of 2008 arises out of order dated 07-12-2007 made by the Tribunal in IT(SS)A No.15/Ahd/2005 for block assessment period related to P.Y. 1996-97 to 2001-2002 and upto 17-07-2002 , filed by the Revenue. 5. Brief facts are that the assessee is the owner of land bearing Survey No.27/1/1/, admeasuring 19,280 sq.mts., situated at village Silvassa in the Union Territory of Dadra and NH. ....
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....Tax Appeal No.1195 of 2008, which arises out of IT(SS)A No.338/Ahd/2004, filed by the assessee, as is evident from the order of the Tribunal. In IT(SS)A No.15/Ahd/2005 filed by the Revenue, which is the subject matter of Tax Appeal No.1196 of 2008, the Revenue had taken a specific ground that the Commissioner(Appeals) has erred in law and on facts in directing the deletion of the addition of Rs.1,07,17,950/- made on account of undisclosed capital gains received as unaccounted initial payment at the rate of Rs.50/- per sq.mt. Similarly, in Tax Appeal No.1196 of 2008, the first question, as proposed, does not arise out of the order dated 07-12-2007 of the Tribunal as this appeal arises out of IT(SS)A.No.15/Ahd /2005 filed by the revenue and no such ground was taken therein. In fact, in the appeal filed before the Tribunal by the assessee (IT(SS)A No.338/Ahd/2004) he has raised the ground that the addition of Rs.2,26,78,400/- on account of undisclosed capital gains could not have been made by the Assessing Officer and confirmed by the Commissioner(Appeals) as the consideration at the rate of Rs.125/- per sq,.mt. of super built up area for the transfer of development right was received....
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....hat the Assessing Officer, on the basis of evidence, found any undisclosed income during the search. 11. On the facts and in the circumstances of the case, the finding of the Tribunal that in view of the fact that the assessee had disclosed the income in the regular returns by filing a note and that the books relating thereto do not show any undisclosed income, is reasonable and justifiable. Any material or evidence, which is unrelated to the search cannot form the basis for computation of undisclosed income, especially when the said income has been disclosed by the assessee in the regular assessment and has been assessed. The said income, therefore, could not be the subject matter of block assessment. No question of law arises out of the order of the Tribunal, as proposed or otherwise. Tax Appeal No.1195 of 2008 stands dismissed, accordingly. 12. The second question proposed in Tax Appeal No.1196 of 2008 can now be considered. This question arises out of the order of the Tribunal made in IT(SS)A.No.15/Ahd/2005 filed by the Revenue. One of the grounds taken by the Revenue before the Tribunal was that the Commissioner(Appeals) could not have directed the deletion of the amount....
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....ial was seized during the course of the search to prove that the assessee has agreed to sell the land at the rate of Rs.175/- per sq.mt. or that he has actually received Rs.175/- per sq.mt. and not Rs.125/- per sq.mt. The Tribunal noted that different calculations are not reconciled and on the basis of such rough calculations no conclusion can be drawn that the assessee had received consideration from the developers at the rate of Rs.175/- per sq.mt. The findings arrived at by the Tribunal on the basis of evidence on record that the addition of Rs.1,07,17,950/- has been rightly deleted is, therefore, not liable to be interfered with. As a result of the above discussion, it is apparent that no question of law, leave alone any substantial question of law, proposed or otherwise, arises for the consideration of this Court. Tax Appeal No.1196 of 2008 is dismissed. Tax Appeal Nos.690 and 1514 of 2008. 13. Tax Appeal No.690 of 2008 arises out of order dated 31-10-2006 made by the Tribunal in IT(SS)A No.109/Ahd/2005 for the block assessment period P.Y.1996-97 to 2001-02 and upto 17-07-2002, filed by the assessee M/s.Parmar Construction, who is one of the developers. Tax Appeal No.151....
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....om the assessee and there is a noting regarding cash payment at the rate of Rs.50/- per sq.mt. and, therefore, the Assessing Officer had rightly made addition of Rs.25,73,100/- on the basis of the notings on the loose papers. 19. The basic facts in these appeals are same as those discussed hereinabove, except that the assessee herein is in the business of development and construction of Projects. Search under Section 132 was carried out at the office premises of the assessee and three other sister concerns on 17-07-2002 wherein various documents and books of accounts were seized, marked as BS1 to BS56 as per panchanama dated 17-7-2003. Return of income was filed by the assessee on 24-4-2003 declaring undisclosed income at 'Nil', in response to notice under Section 158B of the Act. Assessment was completed on 30-07-2004, determining total undisclosed income at Rs.36,84,145/-. At the time of assessment under Section 158BC of the Act, the addition for undisclosed profit of Rs.11,11,045/- on sale of flats and Rs.25,73,100/- on account of initial investment in business, were made. The assessee went in appeal before the Commissioner(Appeals), challenging the above addition for undiscl....
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....that the same was made on the basis of loose paper found and seized during the course of search proceedings and when part of noting regarding cheque payments tallied with books of account?" 22. The assessee in this case is one of the developers of the land with whom the owner entered into an agreement for development thereof. The facts of the case as well as the issues involved are the same as in Tax Appeal No.1514 of 2008 except that the assessee is different. A Search was conducted under Section 132 of the Act at the office premises of the assessee on 17-07-2002. The assessee filed return of income on 24-04-2003 declaring undisclosed income at 'Nil', in response to notice under Section 158BC. The assessment was completed on 30-07-2004, determining total undisclosed income at Rs.1,36,85,210/-. At the time of assessment under Section 158BC of the Act, the addition for undisclosed profit of Rs.95,02,450/- on sale of flats and Rs.41,82,750/- on account of initial investment in business, were made. The assessee disputed this assessment preferring an appeal before the Commissioner (Appeals) wherein the two additions, namely, on account of undisclosed profit of Rs.95,02,450/- on sale....