Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Income Tax Act 143 – Non-disclosure of amoun 1961 – s.142 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Income Tax Act, 1961 (43 of 1961) |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Income Tax Act, 1961 – s.142, 143 – Non-disclosure of amount– Dispute related to the Assessment year (AY) 2009-10 i.e. FinancialYear (FY) 2008-09 – Assessee entered into an agreement wherebydevelopment rights in a property were sold at a Rs. 15,94,06,500/-– However, AO noticed that the aforesaid amount was not disclosedby assessee while filing the return of income – Explanation soughtfrom assessee – In response, the assessee stated that the aforesaidtransaction was duly offered to tax in AY 2008--09 reflecting aconsideration of Rs. 5,24,27,354/- – It was claimed that a rectificationdeed was entered into whereby the value of development rights wasreduced from Rs. 15,94,06,500/- to Rs. 5,24,27,354/- – However,the addition of Rs. 15,94,06,500/- was made by the AO by treatingthe same as short term capital gains – The Commissioner confirmedthe order made by the AO – ITAT reversed the said finding and heldthat the transaction was stock in trade – Also, confirmed that thesale consideration was Rs.5,24,27,354/- only – Appeals weredismissed by the High Court – On appeal, held: ITAT has neitherdealt with the findings given by the AO nor verified/examined thetotal sales made by the assessee during the relevant time and duringthe previous years ITAT after examining opening and closing balancefor the AY 1996-97 to 2007-08 held that the transaction was sale instock in trade – Merely on the basis of recording of the inventory inthe books of accounts, the transaction in question would not becomestock in trade – As assessee claimed that rectification deed wasentered into entered into and the amount was reduced fromRs.15,94,06,500/- to Rs.5,24,27,354/- – ITAT did not question thefactum of refund of differential amount of Rs.10,69,79,146/- – ITATought to have appreciated that the moment the receipt of amount isreceived and recorded in the books of accounts of the assesseeunless shown to be refunded/returned, it is to be treated as incomein the hands of the recipient – ITAT failed to consider relevant aspects while considering transaction in question – Hence, the matter isrequired to be remanded to the ITAT to consider the appeal afresh –Impugned judgment and order passed by the High Court and thatof the ITAT are hereby quashed and set aside. |
Judge | Hon'ble Mr. Justice M.R. Shah |
Neutral Citation | 2023 INSC 492 |
Petitioner | Commissioner Of Income Tax 8 Mumbai |
Respondent | Glowshine Builders & Developers Pvt. Ltd |
SCR | [2023] 7 S.C.R. 1004 |
Judgement Date | 2023-04-04 |
Case Number | 2565 |
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