CIT Vs Jeet Construction Company (Allahabad High Court)
The Allahabad High Court decided two connected appeals filed by the Revenue under Section 260A of the Income Tax Act arising from the orders of the Income Tax Appellate Tribunal (ITAT) dated 31.10.2011 and 19.10.2012 relating to the block assessment years 1997-98 to 2003-04.
Income Tax Appeal No. 604 of 2012 was admitted on questions relating to the deletion of additions of ₹3,82,66,276, ₹1,00,00,000 and ₹6,38,500, as well as whether the ITAT was justified in reversing concurrent findings of fact. Income Tax Appeal No. 81 of 2013 was admitted on questions concerning deletion of penalty imposed under Section 158BFA(2) of the Income Tax Act.
Read SC Judgment in this case: Section 158BD Additions Cannot Rest on Assumptions Without Search Evidence: SC
The respondent-assessee, a partnership firm engaged in civil construction, was subjected to a search under Section 132 on 23.12.2002 at the residences of its working partners and its business premises. During the search, books of account and other materials relating to the firm were seized. Since verification of the seized material was required, the Assessing Officer (AO) issued a notice under Section 158BD on 16.09.2004. As the assessee failed to produce books of account and vouchers, the AO rejected the books and estimated the income for the block period by applying an 8% rate, determining income at ₹51,44,968 without granting credit for income already returned.
