Case Law Details
PCIT Vs Neotech Education Foundation (Gujarat High Court)
Gujarat High Court held that once the primary onus is discharged by the assessee, it is the assessing officer who will need to make an inquiry under Section 133(6). Addition unsustainable in absence of such inquiry.
Facts- During the course of assessment proceedings, it was noticed by AO that a larger portion of land was proposed to be acquired for construction of educational campus. Shri Shashikant Patel was in possession of a large parcel of land in Virod. A public notice was issued for title clearance.
AO compared the entries with the payment details as per the books of accounts and found the payment schedules to have been followed on the page which had been found. In absence of any signature against the payment of Rs. 40 lacs, 21 lacs and Rs.24 lacs respectively paid on 18.7.2014, AO concluded that since the cheque payments were made before the date, even the cash payments must have been made as per the schedule. AO taxed a sum of Rs.5.68 crores as unexplained investment u/s. 69B and had made an addition of Rs.1.35 crores. CIT(A) deleted the addition.
Conclusion- This court in the case of Commissioner of Income Tax V/s Chanakya Developers has held that when primary onus which is cast upon the assessee discharged, it is the assessing officer who will need to make an inquiry under Section 133(6). In absence of such inquiry, the Tribunal had deleted the addition. The Court held that there was substantial question that arose for it to admit.
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