KAVERI ASSOCIATES Vs. ASSISTANT COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This appeal under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as the Act for short) has been preferred by the assessee. The subject matter of the appeal pertains to the Assessment year 1999-00. The appeal was admitted by a bench of this Court vide order dated 17.03.2014 on the following substantial questions of law:

(2.) Facts leading to filing of this appeal briefly stated are that assessee is a partnership firm constituted under the deed of partnership dated 16.03.1996. The business of the firm is to construct, develop, build and sell flats, shop, residential and commercial complex, godown and office etc. The assessee did not commence any business since its inception till the end of 31.03.1999. The only activity carried on by the assessee during the year was commencement of a construction of a shopping center in Arcot Srinivasachar street, Bangalore towards which advances to the tune of Rs.75,50,000/- were received by the assessee from various persons. The assessee for the Assessment year 1999-00 declared his income as 'NIL'. By an order dated 21.03.2005, the Assessing Officer determined the income of the assessee at Rs.75,50,000/- under Section 143(3) read with Section 147 of the Act. Being aggrieved, the assessee filed an appeal before Commissioner of Income Tax (Appeals), which was dismissed by an order dated 29.09.2009. The order of the Commissioner of Income Tax (Appeals) was upheld by the Income Tax Appellate Tribunal (hereinafter referred to as 'the Tribunal', for short) vide order dated 29.03.2010.

(3.) The assessee thereupon approached this court by filing an appeal, which was dismissed by a bench of this court vide order dated 10.07.2012. The assessee thereupon approached the Supreme Court by filing Special Leave Petition, which was dismissed vide order dated 09.11.2012. The Assessing Officer thereafter, passed orders under Section 271(1)(c) of the Act vide order dated 28.03.2011 and 31.03.2011. The assessee being aggrieved, by the aforesaid order filed an appeal before Commissioner of Income Tax (Appeals), which was dismissed by order dated 07.12.2011. The order of the Commissioner of Income Tax (Appeals) was upheld by the Tribunal vide order dated 28.03.2013. In the aforesaid factual background, this appeal has been filed.