Case Law Details
ACIT Vs Laxmi Ram Khandelwal (ITAT Jaipur)
ITAT Jaipur set aside the CIT(A) order as the same being non-speaking and cryptic order which is passed against the principles of natural justice as opportunity to the AO to ascertain the correct fact was not granted.
Facts- A survey u/s. 133A of the Act was conducted at the business premises of M/s. Radha Govind Build Estate Private Limited on 18.11.2009, wherein the assessee is one of the directors. During the course of survey, one of the directors, Shri Ramesh Dangayach was examined and he admitted undisclosed income of Rs. 3,55,31,259/- in the hands of the company based on the papers impounded at the time of survey. The paper indicated undisclosed profit earned on real estate transactions of the assessee as on 26.05.2005. In the case of the company, addition was made in A. Y. 2009-10 based on admission of the director. However, before CIT(A) a claim was made by the company that date mentioned on the document was prior to its inception and thus CIT(A) directed to delete the addition in the hands of the assessee company in A. Y. 2009-10 and further directed to consider it in the respective years as reflected in the impounded document. The impounded document indicated name of the assessee as one of the four investors and recipient of the unaccounted profit earned on real estate transactions up to 26.05.2005, relevant to A. Y. 2006-07.
Thereafter, taking facts into consideration, the AO arrived at the conclusion that substantial income of the assessee has escaped assessment within the meaning of section 147 of the Act, accordingly notice u/s. 148 of the Act was issued after obtaining the necessary approval.
Based on the non-compliance of the assessee, AO after analyzing all the evidences on record and re-producing the same in the assessment order made an addition of Rs. 2,52,73,204/- being the amount not recorded as investment made in the real estate and Rs. 89,35,941/- being the profit earned and not disclosed from the real estate project. Aggrieved by the order of CIT(A), revenue has preferred the present appeal.
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