Godwin Construction Pvt. Ltd Vs ACIT (ITAT Delhi)
ITAT Delhi held that provisions of section 292C of the Income Tax Act is only a deeming provision and the deeming provision cannot be applied mechanically, ignoring the facts of the case and surrounding circumstances.
Facts-
The assessee is a company. AO has noted that a search operation was carried out at the premises of the assessee and its site office on 09.09.2010. After examination of the documents seized, notice u/s 142(1)A of the Act was issued to the assessee on 23.02.2012 calling for the return of income and in response to which, assessee filed return of income for A.Y. 2011-12 declaring income at Rs.24,27,270/-. Thereafter, the case was taken up for scrutiny and consequently the assessment was framed on 31.03.2013 u/s 143(3) determining the total income at Rs.2,72,74,270/-.
Aggrieved by the order of AO, assessee carried the matter before CIT(A) who vide order dated 30.03.2015 in Appeal No.192/13-14 granted partial relief to the assessee. Aggrieved by the order of CIT(A), assessee is now in appeal before the Tribunal
The issue in the present appeal is the addition of Rs.51,39,000/- and Rs.66,31,000/- made by AO and upheld by CIT(A).
Conclusion-
As far as the presumption u/s 292C is concerned, we are of the view that the provision of section 292C of the Act is only a deeming provision. The presumption under section 292C of the Act is rebuttable presumption and the document has to be considered considering the totality of the facts of the case. The deeming provision cannot be applied mechanically ignoring the facts of the case and the surrounding circumstances. Considering the totality of the aforesaid facts, we are of the view that in the present case, no addition of the impugned amounts is called for. We, therefore, direct the deletion of the additions made by AO and upheld by CIT(A).
FULL TEXT OF THE ORDER OF ITAT DELHI
This present appeal filed by the assessee is directed against the order dated 30.03.2015 of the Commissioner of Income Tax (Appeals)-Meerut relating to Assessment Year 2011-12.
2. The relevant facts as culled from the material on records are as under :
3. The assessee is a company. AO has noted that a search operation was carried out at the premises of the assessee and its site office on 09.09.2010. After examination of the documents seized, notice u/s 142(1)A of the Act was issued to the assessee on 23.02.2012 calling for the return of income and in response to which, assessee filed return of income for A.Y. 2011-12 declaring income at Rs.24,27,270/-. Thereafter, the case was taken up for scrutiny and consequently the assessment was framed on 31.03.2013 u/s 143(3) determining the total income at Rs.2,72,74,270/-.
4. Aggrieved by the order of AO, assessee carried the matter before CIT(A) who vide order dated 30.03.2015 in Appeal No.192/13-14 granted partial relief to the assessee. Aggrieved by the order of CIT(A), assessee is now in appeal before the Tribunal and has raised the following grounds:
