The Tax Publishers2020 TaxPub(DT) 0046 (Hyd-Trib)

INCOME TAX ACT, 1961

Section 68

Where it was very clear that land deal in question was made by assessee from the available records and there was no doubt that a substantial amount of on-money was paid, since evidence was compelling that land deal was actually done by assessee and nothing was brought on record by assessee to substantiate its claim, therefore, addition was confirmed.

Income from undisclosed source - Addition under section 68 - Unexplained expenditure - Evidence that assessee paid on-money

A survey under section 133A was conducted on the business premises of assessee in which, certain documents were found and impounded. These documents reveal that assessee had purchased a land as per registered agreement of sale. Along with the impounded registered agreement there were also two typed statements where details of payments made by cheques, through cash as well as details of cash received by assessee were meticulously written. AO found that notings of these pages correlated very well with the registered agreement of sale. Therefore, AO made addition under section 68. Held: From the records, it was very clear that land deal in question was made by assessee and there was no doubt that a substantial amount of on-money was paid. Since evidence was compelling that land deal was actually done by assessee and nothing was brought on record by assessee to substantiate its claim, therefore, addition was confirmed.

REFERRED :

FAVOUR : Against the assessee

A.Y. : 2006-07


INCOME TAX ACT, 1961

Section 40(a)(ia)

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