Case Law Details
Saket M. Jain (HUF) Vs PCIT (ITAT Ahmedabad)
In the assessment framed in the case of M/s Greenwell Orchard under section 143(3) read with section 147 of the Act has been set aside by the learned Pr. CIT under section 263 on the reasoning that the entire amount of sale proceeds is unaccounted income of the assessee. From all these above details, it is revealed that it was the Greenwell Orchard which was engaged in generating/converting its unaccounted income into agriculture income wherein the assessee was only one of the conduit. Thus, in our considered view the entire amount of sales cannot be taxed in the hands of the assessee as unexplained cash credit. At the most, the amount of income generated by the assessee, in the capacity of acting as a conduit, i.e. commission on such entries provided by it which may be brought to tax. Thus the entire amount of sales cannot be treated as income of the assessee. Hence, the order of the l d. CIT under section 263 of the Act is not sustainable in the given facts and circumstances. Accordingly, we quash the same. Hence, the ground of appeal of the assessee is allowed.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
The captioned appeal has been filed at the instance of the Assessee against the order of the Principal Commissioner of Income Tax, Ahmeedabad-5, dated 20/03/2019 arising in the matter of order passed under s. 263 of the Income Tax Act, 1961 (here-in-after referred to as “the Act”) relevant to the Assessment Year 2009-2010.
2. The assessee has raised the following grounds of appeal:
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