2009 (2) TMI 126

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....of 2008 J. Balachandran for the appellant. Pushya Sitaraman for the respondent. JUDGMENT The judgment of the court was delivered by K. RAVIRAJA PANDIAN J.- The appeals are filed against the order of the Income-tax Appellate Tribunal, Madras "B' Bench dated January 12, 2007, made in I. T. SS. A. Nos. 87/Mds/2005 and 98/Mds/2005 for the assessment year April 1, 1990, to September 26, ....

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....xtent of Rs. 67,79,900? 3. Whether the Tribunal is correct in law in concluding that the expenses incurred were illegal, camouflaged as labour / construction expenses in spite of the contradictory evidence available in the seized records especially in the light of the definition of undisclosed income in section 158B(b) of the Act? 2. The facts of the case are as follows: 3. The assessees ....

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....enses involving additional amount paid for acquisition of land and extra amenities provided in the flats. Out of these certain amounts had already been accounted for in the earlier years' books of account leaving a balance of Rs. 39,68,999 and towards this the assessee offered a sum of Rs. 40 lakhs as undisclosed income. However, the Assessing Officer after considering the assessee's explanation a....

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....ion of law, the Tribunal has given reason that the Commissioner of Income-tax (Appeals) failed to note that the cash expenses incurred to an extent of Rs. 95,08,500 represent illegal expenditure, which are prima facie disallowable particularly, view of the fact that the quantum of inflation has been arrived at by the Assessing Officer with reference to the average cost per sq. ft. of construction.....