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1.   Dy. Commissioner of Income Tax Vs. Shri Ashok Tiwari, I.T.A. No. 4062/Del/2013, Date of Order: 18.07.2014, ITAT - Delhi

Cash Deposited in bank account explained as agricultural receipts, duly shown in past and accepted by department, cannot be added as cash credits

Return filed by the assessee for the above Assessment Year’s has been accepted by the department. For the immediately two preceding assessment year’s, namely, assessment years 2008-09 and 2007-08 substantially agricultural income of Rs. 10,25,000/- and Rs. 9,80,000/- was disclosed by the assessee and same as stated earlier was accepted by the department. In the current A.Y, same agricultural income was disclosed to that of the agricultural income declared in the A.Y 2008-09. Therefore, we are of the view the agricultural income disclosed by the assessee in the current year is reasonable and justified and same cannot be added back to the total income by invoking provisions of sec. 68 of the Act. It is order accordingly.

(Please click here for judgment)

2.   Dy. Commissioner of Income Tax Vs. M/s Amrapali Homes, I.T.A No. 4779/Del/2013, Date of Order: 18.07.2014, ITAT - Delhi

Statement recorded during the course of survey cannot be the sole basis for making an addition especially when there is nothing incriminating material or any undisclosed income unearthed during the course of survey proceedings u/s 133A of the Act, and as such it is not necessary the income declared during survey should be the income returned

The assessee is a firm engaged in the business of Real Estate Development. There was a survey u/s 133A of the Act on 1.12.2006. The statement u/s 131 was recorded from the partner of assessee firm Shri Anil Kumar Sharma. In the statement recorded from Shri Anil Kumar Sharma, he had declared an estimated income of Rs. 12.25 crores from the group concern, namely, M/s AHS Joint Venture and assessee firm. However, the return of income of both AHS Joint Venture and assessee firm disclosed only an income of Rs. 11,53,08,342/-. Therefore, the A.O made an addition of Rs. 71,91,658/- being the difference between estimated income declared during course of survey and the returned income as the income of the assessee firm. The estimated declaration of income during the course of survey was given in December 2006 for the period 1.4.2006 to 31.3.2007 i.e. much prior to close of the accounting year. No person can tell in advance in the month of December 2006 as to what exactly would be the income for the entire period of 1.4.2006 to 31.3.2007.

The return of income filed by the assessee is on the basis of audited statement of accounts and not on the basis of any surrender. The books of accounts has not been rejected nor any incriminating material or evidence of undisclosed income was unearthed either during the course survey or assessment proceedings. The Assessing Officer has himself recognized that the declaration made by the assessee was not based on any surrender. The Assessing Officer has not assessed the income at Rs. 6 crores which was the estimated declaration of income during the course survey, but he has completed the assessment at Rs. 5,14,46,510/-.

(Please click here for judgment)