In this Income Tax Appeal, the Bombay High Court dismissed the Revenue's appeal against the Tribunal. The Court found no error in the concurrent findings of fact regarding the lack of material sustaining money laundering additions beyond employee statements.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
27 itxa 1646 of 2016.doc
IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION
INCOME TAX APPEAL NO. 1646 OF 2016
Principal Commissioner of Income Tax,
Central – 2
…
Appellant
versus
M/s. Centaur Mercantile Pvt. Ltd.
…
Respondent
Mr. Suresh Kumar, for Appellant.
CORAM: AKIL KURESHI &
S.J. KATHAWALLA, JJ.
DATE: 15th JULY, 2019
P.C.:
1. This Appeal is filed to challenge the Judgment of the Income Tax Appellate Tribunal (“the Tribunal” for short). The following question is presented for our consideration :
(i)Whether on the facts and circumstances of the case and in law, the
Hon'ble ITAT was correct in not considering the sworn statements given by
employees impromptu that the assessee company is engaged in taking 30% on money
for sale consideration of commercial spaces/residential flats ?
2.We have perused the record with the assistance of the learned Counsel for
the Revenue. The Assessment Officer had made additions with the aid of statements
of the employees of the assessee's company which was subject to search. However,
the Commissioner of Income Tax (Appeals) were of the opinion that there was no
SSP 1/2
27 itxa 1646 of 2016.doc
material on record to sustain the additions. In particular, the Tribunal while
confirming the view of the Commissioner of Tax (Appeals), noted that except for the
statements of the said employees, there was no other material of involvement of on
money. The employees had also recorded their statements. We see no error in the
concurrent findings of facts by the CIT (Appeals) and the Tribunal. No question of
law arises. The Income Tax Appeal is dismissed.
( S.J.KATHAWALLA, J. )
( AKIL KURESHI, J. )
SSP
2 issues framed by the court
Whether the Tribunal was correct in relying solely on sworn employee statements and ignoring material for money laundering additions.
Whether the CIT(A) and Tribunal erred in dismissing the Revenue's appeal against the assessment order.
Principal Commissioner of Income Tax, Central – 2
M/s. Centaur Mercantile Pvt. Ltd.
Akil Kureshi
S.J. Kathawalla
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court