×Latest Case Laws on Income Tax by various Income Tax Appellate Tribunals in India
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These are assessee’s appeals for the AYs.2009-10, 2010-11 & 2011-12 against the order of the Commissioner of Income Tax (Appeals)-12, Hyderabad, dated 14-03-2018 respectively. Condonation of delay:
2. These appeals of assessee have been filed with a delay of 05 days. Ld.Counsel for the assessee, Shri K.A.Sai Prasad, has filed affidavits separately for these appeals, seeking condonation of delay for all these appeals, by stating that –
‘The appeal of the above named assessee before First Appellate Authority was represented by me and the order of the First Appellate Authority was received on 17.03.2018. The due date for filing the appeal was 16.05.2018. After preparing to relevant appeal papers I left them with my office staff and had to leave for Tirupathi in connection with a batch of appeals posted for hearing on 17.05.2018 before Income Tax Appellate Tribunal at Tirupati camp. The office people could not contact the partner concerned. After I returned back from Tirupathi, I contacted the assessee and the appeal was filed on 21.05.2018 causing a delay of 5 days’.
2.1. Considering the petition for condonation of delay in respect of assessee’s appeals and being satisfied with the reasonable cause for the delay, we hereby condone the delay in filing the appeals, and the appeals are admitted.
3. Since the facts and issues involved in all these appeals are common and iden ical, all these appeals were heard together and are being disposed by way of this common and consolidated order. For the sake of convenience, appeal in ITA No.1018/Hyd/2018 for the AY.2009-10 is discussed hereunder in detail.
4. Brief facts of the case are that the assessee is a partnership firm, which came into existence on 13-07-2003 and is engaged in the business of real estate and constructions and Sri Kaithi Damodar Reddy is the Managing Partner of the firm. There was a search and seizure operation u/s.132 of the Income Tax Act [Act] in the case of the Managing Partner of the firm on 24-12-2014, during the course of which, incriminating documents belonging to the assessee-firm were found and seized. Therefore, the AO of Sri Kaithi Damodar Reddy recorded the satisfaction and thereafter, the same was transferred to the AO of the assessee before us. The assessee’s AO issued notice u/s.153C of the Act on 09-09-2016, in response to which, the assessee filed its returns of income for the relevant assessment years.
5. During the assessment proceedings u/s 143(3) r.w.s. 153C of the Act, the AO observed that the assessee-firm has constructed 18 flats in the name and style of Laxminilaya Constructions, admeasuring 25000 Sq.Ft. and that during the course of search, the Managing Partner Sr Kaithi Damodar Reddy admitted that the flats were constructed and the entire sales have been shown during the FYs.2008-09 and 2009-10 and 2010-11, and though the flats were registered @ Rs.1,800/- per Sq.Ft., they have actually sold them at an average price of Rs.2,100/- per Sq.Ft, resulting in undisclosed income of Rs.75 Lakhs (Rs.300 x 25000). The Managing Partner, accordingly agreed to admit the income of Rs.75 Lakhs as ‘un-disclosed income’ for the FYs.2008-09 and 2009-10. During the course of assessment proceeding, AO required the assessee to furnish the details of sales of the above venture. The assessee stated that all the 18 flats in the venture were sold in the AYs.2009-10 to 2011-12, the details of which are as under:
5.1. Assessee filed its returns of income in response to the notice u/s.153C of the Act declaring business income @8% of also the turnover which is not reflected in the books of account. On perusal of the seized material, AO observed the following details of respective sale proceeds together with amount received towards amenities and the rate at which the flats have been sold, as is evident from the handbook, which was found and seized.
5.2. Based on the above details and the statement of the Managing Partner, the AO was of the opinion that assessee has suppressed the turnover for all the assessment years by declaring the sale consideration only @ Rs.619/-, 852/- and