The Tax Publishers2020 TaxPub(DT) 5329 (Ahd-Trib)

INCOME TAX ACT, 1961

Section 69A

Since owner of receipt of Rs. 81 lakhs was director of company and not assessee. Accordingly, assessee could not be held to be owner of receipts of Rs. 81 lakhs and consequently, impugned receipt could not be made subject to tax in the hands of assessee under section 69A.

Income from undisclosed sources - Addition under section 69A - Cash received against sale of shop-owner of receipt being direction of assessee-company -

There was a search, at the premises of 'Sanghvi Group', including residence of directors. During search certain loose papers belonging to assessee were found. Assessee during the year has purchased a plot at Vadaj, Ahmadabad for development of commercial complex, namely, 'Shree Ratna Complex'. On scrutiny of the loose papers that a sum of Rs. 81 lakhs was received by assessee in cash against sale of new shop of its commercial project. Accordingly, AO took the view that impugned receipt of Rs. 81 lacs belonged to assessee against project initiated and conceptualized by it and, therefore, AO made addition in assessee's hands. Assessee contended that above mentioned cash had been incorporated in the cash flow statement of director and accordingly, same was offered to tax in his return of income. Held: Assessee had claimed that receipt of Rs. 81 lakhs was already considered in the hands of director which was not disputed by AO. It implied that owner of receipt of Rs. 81 lakhs was director of company and not assessee. Accordingly, assessee could not be held to be owner of receipts of Rs. 81 lakhs and consequently, impugned receipt could not be made subject to tax in the hands of assessee under section 69A.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2011-2012



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