The Commissioner Of Income Tax(C), Pune v. Rajshree Hoteliers

ASN IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.246 OF 2011 The Commissioner of Income Tax(C), Pune. ..Appellant.v. Rajshree Hoteliers. ..Respondent. Mr.Vimal Gupta, Sr. Advocate i/by Ms. Padma Divakar for the Appellant.Mr. Mihir Naniwadekar for the Respondent. CORAM : J.P. DEVADHAR AND M.S. SANKLECHA, JJ. DATE : 29TH JANUARY, 2013 PC: In this appeal by the revenue several questions have been formulated. The basic controversy is brought out in question A which reads as under: Whether on the facts and in the circumstances of the case and in law the Income Tax Appellate Tribunal did not err in setting aside the order of the Commissioner of Income Tax (Central), Pune u/s. 263 of Income Tax Act, 1961 and directing him to decide the issue de novo in the light of the orders of the Tribunal in the case of Shri. Manrupalal M. Sanghavi and Shri. Popatlal M. Sanghvi wherein the Tribunal had held that if the person had maintained regular books of accounts and duly entered the loan entries in regular manner which was found available at that time of search then such an income or entries cannot be said to be detected or unearthed consequent upon the search and consequently would be out of the ambit of definition of “undisclosed income” as contained under Section 158B? 2) On perusal of the impugned order, it is seen that the Tribunal while setting aside the order of the CIT under Section 263 of the Income Tax Act, 1961 observed as under: “As held by the respected co ordinate bench that if the transactions were genuine and were found recorded in the regular course then such transactions could not be said to be unearthed consequence upon the search.” 3) We are informed that the orders of the co-ordinate bench relied upon in the impugned order have not been disturbed. Thus, no fault can be found with setting aside the order of the CIT. Moreover, in this case the Tribunal after setting aside the order under Section 263 of the said Act passed by CIT, restored the matter to him so as to verify whether the transactions were found recorded in the books of accounts maintained by the respondent-assessee in the regular course of its business. Therefore, the matter has only been remanded to CIT. 3)In view of the above, we see no reason to entertain the proposed question of law. 4)The appeal is dismissed with no order as to costs. (M.S.SANKLECHA, J.) (J.P. DEVADHAR, J.)