COMMISSIONER OF INCOME TAX, BANGALORE Vs. LANCY CONSTRUCTIONS

JUDGEMENT

(1.) The present appeals filed by the Revenue pertain to the assessment years 2005-06, 2006-07, 2007-08 and 2008-09. The facts leading to this case are that for the relevant assessment years 2005-06 and 2006-07, the assessment had been completed under Section 143(3) of the Income Tax Act, 1961 (for short 'Act') whereas for the remaining assessment years 2007-08 and 2008-09, the assessment had been completed under Section 143(1) of the Act. Thereafter, a search was conducted in the premises of the respondent-assessee.

(2.) The Assessing Officer made certain additions after holding that the accounts of the assessee did not tally with the corresponding accounts of the creditors and debtors. Challenging the same, the assessee filed appeals before the Appellate Commissioner, which were allowed, after concluding that no incriminating documents were found during the course of search, on the basis of which additions had been made by the Assessing Officer. It was also observed by the Appellate Commissioner that the books of account maintained by the assessee were not rejected by the Assessing Officer. Aggrieved by the same, the Revenue filed an appeal before the Tribunal, which was also dismissed. Challenging the same, these appeals are filed. The questions of law, as raised in leading appeal bearing ITA No.528/2014, which are to be considered by us, are as under:

(3.) We have heard Sri.Jeevan J. Neeralgi, learned counsel for the appellants as well as Sri S.Parthasarathi, learned counsel appearing along with Sri Mallaha Rao and Jinita Chaterjee, for the respondent, and perused the record.