PRINCIPAL COMMISSIONER OF INCOME TAX Vs. PANCHDEEP CONSULTANTS

JUDGEMENT

(1.) This Tax Appeal under Sec.260-A of the Income Tax Act, 1961, has been filed challenging the order dtd. 31/8/2023 passed by the Income Tax Tribunal in ITA No. 54/AHD/2017 for Assessment Year 2002-2003. Following substantial questions of law have been framed by the revenue:

(2.) Resume of facts would indicate that the assessee firm had filed a return of income on 31/3/2004 declaring total loss of Rs.68,979.00. The assessment was finalized u/s. 144 of the Act determining total income of Rs.6,23,74,523.00 making certain additions. In the order of the Assessing Officer, the proposed additions were suggested as made. Order of the Assessing Officer is quoted as under:

(3.) Mr.Karan Sanghani, learned advocate, would submit on the aspect of unexplained cash credit, that the assessee had not furnished any documentary evidences of explanation regarding source of income. Similarly, on the question of disallowance u/s. 40A(3), the Assessing Officer had made addition of Rs.85,60,000.00 which was 20% of Rs.4,28,00,000.00 for advances given on purchase of land. The CIT(A) and ITAT wrongly accepted the stand of the assessee. With regard to the unexplained expenditure u/s.69 C of Rs.3,55,73,880.00 the Assessing Officer rightly made a disallowance of Rs.3,55,73,880.00 out of a total payment of Rs.4,28,00,000.00. He would support the order of the Assessing Officer.