SHRI RAGHUBHAI VIRABHAI BHARWAD,NA vs. ARIVS.INCOME TAX OFFICER, WARD -4, NAVSARI
What did the Tribunal hold?
The Tribunal held that the addition for trading profit was not substantiated by evidence, as the assessee never acquired ownership, the agreements were not legally enforceable, and the transaction was cancelled. Similarly, additions for unexplained investments under section 69 were deleted as the jottings represented repayments related to the cancelled land deal and not unexplained investments by the assessee. Consequently, the penalty under section 271B, based on the disputed turnover, was also ordered to be obliterated.
What were the facts?
The assessee, engaged in dairy and estate brokerage, filed an income tax return. Following a survey, the Assessing Officer (AO) made additions on account of alleged trading profit from agricultural land sale and unexplained investments under section 69, which were confirmed by the CIT(A). The assessee appealed these additions and a subsequent penalty under section 271B.
What were the issues?
Whether additions on account of alleged trading profit and unexplained investment are sustainable without concrete evidence, and consequential penalty under section 271B.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, SURAT BENCH, SURAT
Before: DR. B.R.R. KUMAR, VICE-MS. SUCHITRA KAMBLE
PER DR. B.R.R. KUMAR, VICE-PRESIDENT:
- These two appeals are filed by the assessee against two separate orders, both dated 16.02.2023, passed by the Ld. Commissioner of Income Tax (Appeals)- 11, Ahmedabad [hereinafter referred to as “Ld. CIT(A)”] arising out of assessment framed under section 143(3) and penalty proceedings under section 271B of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for Assessment Year 2014-15. Since common facts are involved, both appeals are disposed of by this consolidated order. We first adjudicate ITA No. 236/SRT/2023. 2. The assessee has raised following grounds in ITA No. 236/Srt/2023. “1. On the facts and circumst
The order continues below.
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