COMMISSIONER OF INCOME TAX Vs. HARRI JOSEPH

JUDGEMENT

(1.) The question of law raised in the appeal is re-framed by us as follows:

(2.) The assessee was in appeal before the Tribunal and the Tribunal on the ground of the assessee's mother having filed a return conceding capital gains, set aside the addition of Rs.60.00 lakhs as against the assessee. By Annexure-A, the assessment of the assessee was completed taking as undisclosed income, various credits in the bank account between 8/8/2005 and 23/11/2005. Out of the total amount of Rs.98,18,244.00, Rs.60,00,000.00 according to the assessee represented the unaccounted receipt on the sale of the property by his mother. The property is said to have actually fetched Rs.74,00,000.00 and the mother, the owner of the property, deposited Rs.60,00,000.00 in the account of the assessee. The document of conveyance, however, showed a value of only Rs.14,00,000.00. This was admitted by the assessee. A letter produced from the purchaser also confirmed the same. The Tribunal merely on the ground of a return having been filed, reversed the addition with respect of Rs.60,00,000.00.

(3.) The assessment year is 2006-07. The sale of the property was in the previous year of the assessment year. The return of income filed by the mother was on 27/8/2013. Though the return was filed, there was nothing done by the Department on the same especially since six years had elapsed by the time the return was filed. If at all, the Department could take up proceedings, for the assessment year 2006-07, it could have been only prior to 31/3/2013. The return was filed by the mother, on 27/8/2013. In such circumstance, it cannot be said that the income that was added on to the assessee had already suffered capital gains tax at the hands of the mother. The fact remains that the amounts were credited to the account of the assessee and it remained as undisclosed income insofar as the assessee having returned only Rs.1,17,830.00 in the subject assessment year.