K.K. Radhakrishnan Vs DCIT (ITAT Cochin)
Cochin ITAT has upheld the additions made on K.K. Radhakrishnan, proprietor of K.K. Wood Crafts & partner in K.K. Group, rejecting his pleas on “mechanical approval” u/s 153D & absence of incriminating material. Assessee, engaged in real estate, construction & bar & restaurant business, was subjected to a search u/s 132 on 26.09.2012. Seized material indicated unaccounted income from a BOT bus stand project & liquor sales. Pursuant to the search, AO completed assessments u/s 153A r.w.s. 143(3) for the impugned years, making additions towards unexplained expenditure u/s 69C & personal expenses based on seized documents & Assessee’s statement recorded u/s 132(4).
Assessee contended before Tribunal that the assessment was “invalid on the ground that there was no proper approval u/s 153D by the JCIT & the same was granted in a mechanical manner without application of mind.” It was further argued that “the additions are bad in law in the absence of any incriminating material found in the course of search relatable to the relevant assessment years,” that estimation of income was “without direct corroboration,” & that “expenses related to the alleged income ought to be allowed” even in the case of additions u/s 69C.
