COMMISSIONER OF INCOME TAX-1 Vs. B.G. SHIRKE CONSTRUCTION TECHNOLOGY PVT. LTD.
HIGH COURT OF BOMBAY
COMMISSIONER OF INCOME TAX-1
B.G. Shirke Construction Technology Pvt. Ltd.
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M.S. Sanklecha, J. -
(1.) This Appeal under Section 260A of the Income Tax Act, 1961 (the Act), challenges the order dated 30.9.2014 passed by the Income Tax Appellate Tribunal (the Tribunal). The impugned order dated 30.9.2014 is in respect of Assessment Year 2009-10.
(2.) Mr. Tejveer Singh the learned counsel appearing for the Revenue urges only the following question of law for our consideration:
"(a) Whether the Tribunal was justified in law in holding that the discrepancy between book value and physical value cannot be taxed under section 69C of the Income Tax Act, but it can be taxed under section 69 to 69B only ?"
(3.) The Respondent Assessee is a company engaged in the business of civil construction. On 18.12.2008 there was search and seizure operation conducted in the Respondent's premises. During the course of search, valuation report of the site engineers of the projects regarding work in progress (WIP) as on 30.11.2008 were found. It was noticed the figures indicated in the valuation report of the site engineers were higher than the work-in-progress recorded in the books of the Respondent as on 30.11.2008. As per the provisional Profit and Loss Account, this difference was Rs. 9.30 Crores. Thus, the Respondent had agreed on 16.2.2008 to addition of Rs. 10 Crores being made. However, at the end of subject Assessment Year in its return of income the Respondent had not offered the additional income of Rs. 10 Crores. Nevertheless, the Assessing Officer proceeded to add Rs. 10 Crores being the additional income on account of excess work in progress, which was financed out of unexplained source of income. Thus, attracting Section 69C of the Act. Resultantly, the Assessing Officer by order dated 31.12.2010 passed under Section 143(3) of the Act made an addition of Rs. 10 Crores under Section 69C of the Act.;
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