COMMISSIONER OF INCOME TAX Vs. VIRENDRA KUMAR GUPTA

JUDGEMENT

(1.) We feel that the order of the tribunal is just and fair. Rs.20 cores was surrendered as undisclosed income at the time of search and it was agreed that the tax liability should be paid as set out in the statement recorded under Section 132(4) of the Income Tax Act, 1961 (Act, for short) of Virendara Kumar Gupta. The said statement has been reproduced in the impugned order passed by the tribunal. Subsequently, affidavit of Sarad Jain was filed on 15th May, 2009 wherein the undisclosed income of Rs.20 crores was duly maintained and accepted. The disclosure was bifurcated into Rs.7.50 crores, as on account of discrepancies in inventory prepared at the business premises of M/s Gupta and Company Private Limited. Rs.12.50 crores was disclosed as income earned through joint enterprise of Virendara Kumar Gupta, Sarad Jain and Sudhir Jain, described as "Sugandh Sansar" in terms of agreement dated 9th January, 1998.

(2.) The "Sugandh Sansar" as an Association of Persons (AOP) filed return of income for the Assessment Year 2009-10 on 30th October, 2009 declaring income of Rs.11 crores under the head "income from business and profession" after claiming operational expenses of Rs.1.5 crores from the surrendered amount of Rs.12.5 crores. The Assessing Officer, however, came to the conclusion that this amount should not be taxed in the hands of three member AOP, but individually in the hands of Virendara Kumar Gupta, Sarad Jain and Sudhir Jain. Thereafter, "Sugandh Sansar" AOP filed a revision petition under Section 264 of the Act and the Commissioner of Income Tax, Delhi-VII passed an order dated 18th June, 2012. The relevant portion of the order reads as under:-

(3.) Revenue has not challenged and questioned the said order.