C.I.T. Vs. ABHISHEK CORPORATION

JUDGEMENT

(1.) THE following two questions have been referred by the Income Tax Appellate Tribunal, Ahmedabad under Section 256(1) of the Income Tax Act, 1961 arising out of the Tribunal's order dated 04.08.1998 in ITA No. 153/Ahd/1997:

(2.) THE assessee had filed appeal against the order of DCIT(Asstt.) Spl., Surat Under section 143(3) of the Act for the assessment years 1987 -88 to 1997 -98. The only effective ground taken by the assessee was regarding the assessment of undisclosed income of Rs. 1,88,59,400/ - as 'On Money'/Premium charged by the assessee as against the undisclosed income of Rs. 30 lakhs disclosed by the assessee as net income earned in the project of Uday Towers in the return of undisclosed income filed in response to notice u/s 158BC. The Tribunal allowed the appeal and deleted the addition made by the Assessing Officer.

(3.) MR . Soparkar, learned advocate for the respondent opposed the reference contending that no question of law arises. He contended that even if the on money collection is believed, what could be taxed in the hands of the assessee is only the income and not the entire receipt. He has relied upon the decision of this Court in the case of Commissioner of Income Tax v. President Industries reported in : [2002] 258 ITR 654 wherein this Court rejecting the appeal took a view that unless there is a finding to the effect that investment by way of incurring the cost in acquiring the goods which have been sold has been made by the assessee and that has also not been disclosed, such addition could not be sustained.