Law:

Section:

Section 69 of the Income-tax Act, 1961 - Unexplained investments - Assessment year 1998-99 - Assessee had entered into an agreement for purchase of a shop for a sum of Rs. 49,91,842 - Under an agreement assessee paid Rs. 12.5 lakhs as a token value at time of executing agreement and remaining amount was to be paid in instalments - Assessing Officer noticed that real value of investment made by assessee was Rs. 49,91,842 and after giving credit to Rs. 12.5 lakhs admitted by assessee and disclosed under the VDIS, treated difference of Rs. 37,41,842 as unexplained investment made by assessee - Whether on facts it could be said that burden of proof had been discharged by revenue by establishing that assessee had paid more than what was declared or disclosed and, therefore, Assessing Officer was justified in doing so - Held, yes CASES REFERRED TO K.P. Varghese v. ITO [1981] 131 ITR 597/ 7 Taxman 13 (SC) [Para 3] and CIT v. Smt. K.C. Agnes [2003] 262 ITR 354/ 128 Taxman 848 (Ker.) [Para 3]. P. Balachandran for the Appellant. P.K.R. Menon for the Respondent. JUDGMENT K.S. Radhakrishnan, J. - Appellant is a dealer in steel wares in Trichur under the name and style 'Cherakulam Vessels'. Assessee filed return of income for the assessment year 1998-99 declaring a total income of Rs. 55,920 and agricultural income of Rs. 50,000. Return of income was accepted under section 143(1) of the Income-tax Act. Since survey under section 133A of the Act was carried out at the business premises of the assessee on 8-9-1997, the case was selected for scrutiny. During the course of survey under section 133A an agreement dated 12-5-1997 executed between the promoters of City Centre Shopping Complex, Round West, Trichur and the assessee was obtained. As per that agreement assessee had agreed to purchase shop room No. 115 measuring 688.53 sq. ft. with proportionate common facilities in City Centre, Trichur for a sum of Rs. 49,91,842. Further, as per the agreement, assessee had paid Rs. 12,50,000 being the token value at the time of executing the agreement and the remaining amount of Rs. 37,41,842 was to be paid in five monthly equal instalments of Rs. 6,65,000 starting from 12-6-1997 and…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492