PCIT Vs Anupam Organiser (Gujarat High Court)
The Revenue filed a tax appeal under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Surat, dated 13 December 2019 for Assessment Year 2013-14. The appeal challenged the Tribunal’s deletion of an addition of ₹6,02,77,106 made as business income on account of alleged “on-money” received outside the books of account. The Revenue contended that the addition was based on extrapolation of seized and impounded evidence relating to the assessee’s real estate project and supported by the statement of a broker recorded under Section 132(4) of the Act. The Revenue further argued that the entire extrapolated receipt should have been taxed as business income because there was no evidence of expenditure to justify taxing only the profit element, and that the Tribunal failed to appreciate the systematic collection of on-money established through the seized material and the broker’s statement.
The High Court heard the parties and examined the material on record. It observed that the questions of law raised by the Revenue were no longer res integra in view of its earlier judgment in Deputy Commissioner of Income Tax (Asst.) v. Panna Corporation and connected matters. The Court reproduced the reasoning from that earlier decision.
