ARTH HOUSING DEVELOPMENT P. LTD, MUMBAI V. ASST. CIT CEN CIR 25, MUMBAI

ITA 6764/MUM/2010

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 2542 (ITAT-MUMBAI)
• Duration Of Justice: 5 year(s) 1 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 01-06-2015
• Assessment Year: 2002-2003
• Appeal Filed On: 24-09-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VANDANA SAGAR
• Keywords: Unexplained expenditure
• Section: 69C; 143(3); 153A; 69; 145; 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH A, MUMBAI BEORE SHRI G.S.PANNU, ACCOUNTANT MEMBER AND SHRI SANDEEP GOSAIN, JUDICIAL MEMBER ITA NO.6764/MUM/2010(A.Y.2002-03) ITA NO. 6765/MUM/201(A. Y : 2003-04) ITA NO.6766/MUM/2010(A.Y. 2004-05) ARTH HOUSING DEVELOPMENT PVT. LTD. 11, VIRKAR APARTMENTS, ASARA CO-OP. HSG. SOC. LTD. 17 TH ROAD, KHAR (W) MUMBAI 400 052 PAN:AABCA 4092Q ... APPELLANT VS. THE ACIT, C.C -25, MUMBAI. ...... RESPONDEN T ITA NO.6767/MUM/2010(A.Y. 2005-06) ARTH HOUSING DEVELOPMENT PVT. LTD. 11, VIRKAR APARTMENTS, ASARA CO-OP. HSG. SOC. LTD. 17 TH ROAD, KHAR (W) MUMBAI 400 052 PAN:AABCA 4092Q ... APPELLANT VS. THE ACIT, C.C -25, MUMBAI. ...... RESPONDENT ITA NO.6964/MUM/2010(A.Y. 2005-06) THE ACIT, C.C -25, MUMBAI. ...... APPELL ANT 2 ARTH HOUSING DEVELOPMENT PVT. LTD. VS. ARTH HOUSING DEVELOPMENT PVT. LTD. 11, VIRKAR APARTMENTS, ASARA CO-OP. HSG. SOC. LTD. 17 TH ROAD, KHAR (W) MUMBAI 400 052 PAN:AABCA 4092Q ..RESPONDENT ITA NO.6768/MUM/2010(A.Y.2006-07) ARTH HOUSING DEVELOPMENT PVT. LTD. 11, VIRKAR APARTMENTS, ASARA CO-OP. HSG. SOC. LTD. 17 TH ROAD, KHAR (W) MUMBAI 400 052 PAN:AABCA 4092Q ....APPELLANT VS. THE ACIT, C.C -25, MUMBAI. ...... RESPO NDENT ITA NO.6965/MUM/2010(A.Y. 2007-08) THE ACIT, C.C -25, MUMBAI. ...... AP PELLANT VS. ARTH HOUSING DEVELOPMENT PVT. LTD. 11, VIRKAR APARTMENTS, ASARA CO-OP. HSG. SOC. LTD. 17 TH ROAD, KHAR (W) MUMBAI 400 052 PAN:AABCA 4092Q ...RESPONDENT REVENUE BY : MS. VANDANA SAGAR ASSESSEE BY : SHRI VIMAL PUNMIYA DATE OF HEARING : 26/08/2015 DATE OF PRONOUNCEMENT : 30 /10/2015 3 ARTH HOUSING DEVELOPMENT PVT. LTD. ORDER PER G.S. PANNU,AM: THE CAPTIONED ARE SEVEN APPEALS, OUT OF WHICH FIV E APPEALS HAVE BEEN PREFERRED BY THE ASSESSEE AND THE OTHER TWO APPEALS BY THE REVENUE. SINCE ALL THE APPEALS RELATE TO THE SAME ASSESSEE AND INVOLVE A COMMON ISSUE RELATING TO THE ASSESSABILITY OF THE INCOME OFFERED BY THE ASSESSEE-COMPANY IN THE COURSE OF SEARCH, THE A PPEALS HAVE BEEN CLUBBED AND HEARD TOGETHER AND A CONSOLIDATED ORDER IS BEING PASSED FOR THE SAKE OF CONVENIENCE AND BREVITY. 2. BRIEFLY PUT, THE RELEVANT FACTS ARE THAT THE ASS ESSEE IS A PRIVATE LIMITED COMPANY INCORPORATED UNDER THE PROVISIONS O F THE COMPANIES ACT, 1956 AND IS, INTER-ALIA, ENGAGED IN THE BUSINE SS OF DEVELOPMENT OF REAL ESTATE PROPERTIES. A SEARCH ACTION UNDER SECT ION 132 OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) WAS CARRIED OUT IN THE CASE OF THE ASSESSEE GROUP ON 11/4/2007,WHEREIN CERTAIN INCRIMI NATING MATERIAL/DOCUMENTS WERE FOUND AND SEIZED, AND IN PA RTICULAR, WE ARE CONCERNED WITH A RECORD FOUND WHICH SHOWED RECEIPT OF MONEY AND INCURRENCE OF EXPENDITURE ON CONSTRUCTION, ETC. REL ATING TO PROJECTS UNDERTAKEN BY THE ASSESSEE, SUCH AMOUNTS NOT BEING FOUND RECORDED IN THE REGULAR BOOKS OF ACCOUNTS MAINTAINED. IN TH E COURSE OF SEARCH ACTION, THE ASSESSEE GROUP MADE DECLARATION OF ADDI TIONAL INCOME OF RS.10.00 CRORES UNDER SECTION 132(4) OF THE ACT. O UT OF THE TOTAL SURRENDER OF RS.10.00 CRORES, AN AMOUNT OF RS.9.20 CRORES (APPROXIMATELY) WAS OFFERED FOR TAX IN THE HANDS OF THE ASSESSEE COMPANY FOR THE CAPTIONED ASSESSMENT YEARS RELATING TO A.Y 2002-03 TO 4 ARTH HOUSING DEVELOPMENT PVT. LTD. 2007-08. NOTABLY, IN THE SURRENDER MADE AT THE TIM E OF SEARCH, ADDITIONAL INCOME WAS OFFERED FOR EACH OF THE ASSES SMENT YEARS UNDER CONSIDERATION. AT THE TIME OF FILING OF RETURNS IN RESPONSE TO NOTICES UNDER SECTION 153A OF THE ACT, THE ASSESSEE COMPANY OFFERED ADDITIONAL INCOME FOR EACH OF THE INDIVIDUAL ASSESSMENT Y EARS DIFFERENTLY THAN THE AMOUNTS SURRENDERED AT THE TIME OF SEARCH, THO UGH IN TOTALITY THERE WAS NO DIFFERENCE. THE AFORESAID DIFFERENCE IS THE BONE OF CONTENTION BETWEEN THE ASSESSEE AND REVENUE BEFORE US. 3. IN ORDER TO APPRECIATE THE CONTROVERSY, BRIEF BA CKGROUND OF THE DISPUTE CAN BE SUMMARIZED AS FOLLOWS. AT THE TIME OF SEARCH THE ADDITIONAL INCOME WAS OFFERED FOR THE ASSESSMENT YE ARS 2002-03 TO 2007-08 AS FOLLOWS:- ASSESSMENT YEAR AMOUNT (RS. IN LAC) BASIS 2002-03 84.51 GROSS RECEIPTS 2003-04 220.81 GROSS RECEIPTS 2004-05 97.35 GROSS RECEIPTS 2005-05 154.00 GROSS RECEIPTS 2006-07 115.00 GROSS RECEIPTS 2007-08 250.52 REMAINING BALANCE OUT OF 10 CRORES DISCLOSED. TOTAL 922.19 3.1 AT THE TIME OF SEARCH, THE AMOUNT WAS DISCLOSED YEAR-WISE ON THE BASIS OF THE YEAR OF RECEIPT. IN OTHER WORDS, UNDI SCLOSED AMOUNTS FOUND RECORDED IN THE SEIZED MATERIAL WAS DECLARED IN THE RESPECTIVE YEARS OF RECEIPT. HOWEVER, IN THE RETURNS OF INCOME FILED F OR THE ASSESSMENT 5 ARTH HOUSING DEVELOPMENT PVT. LTD. YEARS 2002-03 TO 2007-08 IN RESPONSE TO THE NOTICES ISSUED UNDER SECTION 153A OF THE ACT, ASSESSEE DISCLOSED THE INC OMES AS UNDER:- ASSESSMENT YEAR AMOUNT (RS. IN LAC) BASIS 2002-03 0.00 2003-04 1.00 PROJECT COMPLETION METHOD 2004-05 0.65 2005-06 175.00 2006-07 0.00 2007-08 743.35 REMAINING BALANCE OUT OF 10 CRORES DISCLOSED TOTAL 920.00 3.2 HOWEVER, THE AO DIFFERED WITH THE ASSESSEE, AS ACCORDING TO HIM, THE UNDISCLOSED RECEIPST FOUND AT THE TIME OF SEARC H WERE LIABLE TO BE TAXED IN THE YEAR WHEN SUCH AMOUNT WAS ACTUALLY REC EIVED BY THE ASSESSEE. THE STAND OF THE ASSESSEE, ON THE OTHER HAND, WAS THAT THE INCOME WITH RESPECT TO SUCH UNRECORDED RECEIPTS BE TAXED ON THE BASIS OF THE METHOD OF ACCOUNTING REGULARLY EMPLOYED. NO TABLY, IN THE REGULAR RETURNS OF INCOME FILED THE ASSESSEE-COMPAN Y WAS DECLARING THE INCOME FROM THE BUSINESS OF DEVELOPMENT OF REAL EST ATE PROPERTIES BY ADOPTING THE WORK-IN-PROGRESS CUM PROJECT COMPLETIO N METHOD. THE METHODOLOGY ADOPTED BY THE ASSESSEE WAS TO DECLARE IN EACH YEAR A CERTAIN PERCENTAGE ( 6% TO 7%) OF THE EXPENSES INCU RRED IN PARTICULAR YEAR, AS INCOME FOR THAT YEAR. ADDITIONALLY, IN THE CASE OF A PROJECT BEING COMPLETED IN A PARTICULAR YEAR, THE SALES/REVENUES WERE MATCHED WITH THE COSTS AND THE BALANCE OF THE PROFIT WAS ALSO D ECLARED. THUS, IN A GIVEN YEAR, PROFIT DECLARED BY THE ASSESSEE FROM TH E BUSINESS OF DEVELOPMENT OF REAL ESTATE PROPERTIES WAS A MIX O F PERCENTAGE OF EXPENSES INCURRED ON THE PROJECT PLUS BALANCE OF T HE PROFIT IN THE CASE 6 ARTH HOUSING DEVELOPMENT PVT. LTD. OF A COMPLETED PROJECT. IN THE RETURNS OF INCOME F ILED IN RESPONSE TO THE NOTICES ISSUED UNDER SECTION 153A OF THE ACT, AMOUNT OF ADDITIONAL INCOME SURRENDERED DURING THE COURSE OF SEARCH WAS OFFERED FOR TAXATION IN EACH OF THE CAPTIONED ASSESSMENT YEARS BY ADOPTING THE AFORESAID METHODOLOGY. THE AFORESAID STAND OF THE ASSESSEE WAS NOT ACCEPTED BY THE ASSESSING OFFICER, WHO INSTEAD TAXE D THE INCOME SURRENDERED BY THE ASSESSEE ON THE BASIS OF THE YEA R OF RECEIPT OF SUCH AMOUNTS. ACCORDINGLY, THE ASSESSMENT FINALIZED BY THE ASSESSING OFFICER FOR THE ASSESSMENT YEARS 2002-03 TO 2007-08 CONTAIN ED ASSESSMENT OF UNDISCLOSED RECEIPTS AS FOLLOWS:- ASSESSMENT YEAR AMOUNT (RS. IN LAC) BASIS 2002-03 84.51 GROSS RECEIPT 2003-04 224.81 GROSS RECEIPT 2004-05 97.35 GROSS RECEIPT 2005-06 846.66 GROSS RECEIPT (154.0)+ SEC 69 UNEXPLAINED EXPENDITURE (690.66) 2006-07 115.00 GROSS RECEIPT 2007-08 8.33 (742.85 ON PROTECTIVE) -- TOTAL 1375.66 3.3 NOTABLY, IN RELATION TO ASSESSMENT YEAR 2005-06 THE ASSESSING OFFICER NOTICED THAT THE SEIZED RECORD SHOWED RECE IPT OF RS.140.00 LACS AS AGAINST RS.154.00 LACS REFLECTED BY THE ASSESSEE AND FURTHER NOTICED AN UNEXPLAINED EXPENDITURE OF RS. 845.66 LACS. CO NSIDERING THAT THE RECEIPT OF RS.140.000 LACS WAS AVAILABLE, THE BALAN CE OF RS.690.66 LACS WAS TREATED AS UNEXPLAINED EXPENDITURE AND HAS BEEN ADDED TO THE TOTAL INCOME UNDER SECTION 69 OF THE ACT. FURTHER, FOR ASSESSMENT YEAR 7 ARTH HOUSING DEVELOPMENT PVT. LTD. 2007-08 AN AMOUNT OF RS.742.85 LACS WAS ADDED BY TH E ASSESSING OFFICER ON PROTECTIVE BASIS SINCE THE ASSESSEE HAD RETURNED ADDITIONAL INCOME ON ACCOUNT OF UNDISCLOSED RECEIPTS IN THE RE SPECTIVE YEARS. 4. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE CIT(A) CHALLENGING THE ACTION OF THE ASSESSING OFFICER ON VARIED GROUNDS. THE PRIMARY PLEA OF THE ASSESSEE BEFORE THE CIT(A) WAS THAT THE UNDISCLOSED RECEIPTS FOUND AT THE TIME OF SEARCH SHOULD BE SUBJ ECT TO TAX ON THE BASIS OF THE ACCOUNTING METHOD REGULARLY FOLLOWED B Y THE ASSESSEE AND NOT MERELY ON THE BASIS OF ACTUAL RECEIPTS. THE CI T(A) DISAGREED WITH THE ASSESSEE AND HAS UPHELD THE STAND OF THE ASSES SING OFFICER TO THE EFFECT THAT THE UNDISCLOSED CASH RECEIPTS ARE LIABL E TO BE TAXED AS INCOME IN THE YEAR IN WHICH IT IS RECEIVED. HOWEV ER, CIT(A) ALLOWED PARTIAL RELIEF TO THE ASSESSEE WITH RESPECT TO ASS ESSMENT YEARS 2005-06 AND 2007-08 AND FOR ASSESSMENT YEAR 2006-07, HE HAS ENHANCED THE INCOME TO RS.129.00 LACS AS AGAINST RS.115.00 LACS ASSESSED BY THE ASSESSING OFFICER. FOR ASSESSMENT YEAR 2005-06, TH E CIT(A) ALLOWED TELESCOPING OF THE PRECEDING THREE YEARS RECEIPTS AGAINST THE UNRECORDED EXPENDITURE NOTICED IN THE SEIZED RECORD . IN THIS MANNER, THE TOTAL INCOME WAS ASSESSED AT RS.446.67 LACS AS AGAINST RS.846.66 LACS COMPUTED BY THE ASSESSING OFFICER ON THIS COUN T. IN SO FAR AS THE PROTECTIVE ADDITION FOR ASSESSMENT YEAR 2007-08 IS CONCERNED, THE CIT(A) HAS DELETED THE SAME. 5. IN THE ABOVE BACKGROUND, BEFORE US, LD. REPRESE NTATIVE FOR THE ASSESSEE VEHEMENTLY ARGUED THAT THE METHODOLOGY AD OPTED TO ASSESS THE INCOME OF THE ASSESSEE IN THE REGULAR ASSESSMEN T UNDER SECTION 8 ARTH HOUSING DEVELOPMENT PVT. LTD. 143(3) OF THE ACT FOR THE CAPTIONED ASSESSMENT YEAR S BE FOLLOWED IN ORDER TO ASSESS THE INCOME RELATING TO THE UNDISCL OSED RECEIPTS FOUND DURING THE COURSE OF SEARCH. LD. REPRESENTATIVE EM PHASIZED THAT THE INCOME ON ACCOUNT OF UNDISCLOSED RECEIPTS BE COMPUT ED ON THE BASIS OF THE REGULAR METHOD OF ACCOUNTING BECAUSE IT WOULD E NSURE CONSISTENCY. 6. ON THIS ASPECT, LD. DEPARTMENTAL REPRESENTATIVE APPEARING FOR THE REVENUE HAS DEFENDED THE ORDERS OF THE AUTHORIT IES BELOW BY POINTING OUT THAT THE UNDISCLOSED RECEIPTS FOUND AT THE TIME OF SEARCH OUGHT TO BE ASSESSED IN THE YEAR TO WHICH THEY RELA TE. 7. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIO NS. THE SHORT POINT INVOLVED BEFORE US RELATES TO THE YEAR OF TAX ABILITY OF THE UNDISCLOSED RECEIPTS OF BUSINESS FOUND DURING THE C OURSE OF SEARCH. SECTION- 4 OF THE ACT PRESCRIBES CHARGE OF INCOME T AX ON THE TOTAL INCOME OF THE PREVIOUS YEAR OF AN ASSESSEE AND SECT ION -5 OF THE ACT POSTULATES THE SCOPE OF SUCH TOTAL INCOME. NOTABLY , THE INCOME CHARGEABLE UNDER THE HEAD PROFITS AND GAINS OF BUS INESS OR PROFESSION IS LIABLE TO BE COMPUTED IN ACCORDANCE WITH METHOD OF ACCOUNTING PRESCRIBED UNDER SECTION 145 OF THE ACT. THEREFORE , THE INCOME CHARGEABLE TO TAX FOR ANY PARTICULAR ASSESSMENT YEA R UNDER THE HEAD PROFITS AND GAINS OF BUSINESS OR PROFESSION IS C OMPUTED AS PER THE METHODOLOGY OF ACCOUNTING PRESCRIBED IN SECTION 14 5 OF THE ACT. IN THE PRESENT CASE ASSESSEE COMPANY IS ENGAGED IN THE BUS INESS OF DEVELOPMENT OF REAL ESTATE PROPERTIES AND IS DECLA RING INCOME FROM SUCH BUSINESS ON THE BASIS OF A PARTICULAR METHODOL OGY, WHICH HAS BEEN ACCEPTED IN THE COURSE OF REGULAR ASSESSMENTS. T HE ASSESSEE COMPANY 9 ARTH HOUSING DEVELOPMENT PVT. LTD. DECLARES PROFIT BASED ON CERTAIN PERCENTAGE ( 6 OR 7%) OF THE EXPENSES INCURRED ON A PROJECT DURING THE YEAR PLUS BALANCE PROFIT OF THE PROJECT WHICH IS COMPLETED DURING YEAR, WHICH IS CO MPUTED BY MATCHING THE SALES/REVENUES WITH THE COSTS INCURRED . THUS, THE PROFIT DECLARED BY THE ASSESSEE UNDER THE HEAD PROFITS AN D GAINS OF BUSINESS OR PROFESSION IS A COMBINATION OF A PERCENTAGE OF EXPENSES INCURRED ON THE ON-GOING PROJECTS PLUS THE BALANCE OF THE PRO FIT OF PROJECTS COMPLETED DURING PARTICULAR YEAR. THE METHODOLOGY OF ACCOUNTING IS NOT DISPUTED BY THE REVENUE. SO HOWEVER, THE DISPU TE RELATES TO ASSESSING OF INCOME IN RELATION TO SUCH UNDISCLOSED RECEIPTS OF BUSINESS, WHICH WERE FOUND IN THE COURSE OF SEARCH AND WERE NOT DECLARED IN THE REGULAR BOOKS OF ACCOUNT. NOTABLY, IN SO FAR A S THE NATURE OF SUCH UNRECORDED RECEIPTS IS CONCERNED, THERE IS NO DISPU TE BETWEEN THE ASSESSEE AND THE REVENUE. BOTH SIDES AGREE THAT TH E UNDISCLOSED RECEIPTS FOUND DURING THE COURSE OF SEARCH ARE A PA RT AND PARCEL OF THE BUSINESS OF THE ASSESSEE OF DEVELOPING REAL ESTATE PROPERTIES. IN THIS FACTUAL BACKGROUND, IN OUR VIEW, THE SAME METHODOLO GY OUGHT TO BE ADOPTED TO ASSESS INCOME EMBEDDED IN SUCH UNDISCLOS ED RECEIPTS, AS HAS BEEN ACCEPTED BY THE REVENUE IN THE REGULAR ASS ESSMENTS. NO DOUBT, AT THE TIME OF SEARCH ASSESSEE OFFERED INCO ME FROM SUCH UNDISCLOSED RECEIPTS IN THE RESPECTIVE YEARS OF REC EIPT, WHICH WAS A DEPARTURE FROM THE REGULAR METHODOLOGY OF COMPUTIN G, INCOME ACCEPTED BY THE REVENUE. NOTWITHSTANDING THE AFORE SAID, IN THE RETURNS OF INCOME FILED IN RESPONSE TO THE NOTICES ISSUED UNDER SECTION 153A OF THE ACT FOR THE CAPTIONED ASSESSMENT YEARS, THE ASSESSEE- COMPANY DECLARED INCOME FROM SUCH UNDISCLOSED RECEI PTS AS PER THE REGULAR METHODOLOGY ACCEPTED BY THE REVENUE IN THE REGULAR 10 ARTH HOUSING DEVELOPMENT PVT. LTD. ASSESSMENTS. THE STAND OF THE ASSESSING OFFICER, I N OUR VIEW, LEADS TO AN INHERENT CONTRADICTION IN THE FINAL ASSESSMENT B ECAUSE THE RESULTANT INCOME WOULD BE A MIX OF TWO METHODOLOGIES. FIRST LY, THE RESULTANT INCOME CONTAINS INCOME FROM BUSINESS COMPUTED ON TH E BASIS OF REGULAR METHODOLOGY AND SECONDLY, INCOME IN RELATIO N TO UNDISCLOSED RECEIPTS OF THE SAME BUSINESS, WHICH IS ASSESSED O N RECEIPT BASIS. TO OBVIATE SUCH INHERENT CONTRADICTION, IN OUR VIEW, ASSESSEE- COMPANY HAD RIGHTLY ASSERTED AT THE TIME OF FILING OF RETUR NS OF INCOME UNDER SECTION 153A OF THE ACT THAT THE INCOME FROM UNDISC LOSED RECEIPTS BE ALSO COMPUTED AS PER THE REGULAR METHODOLOGY ACCEPT ED BY THE REVENUE IN THE PAST. THEREFORE, ON THIS ASPECT WE UPHOLD THE PLEA OF THE ASSESSEE. 7.1 AS A CONSEQUENCE, WE SET ASIDE THE ORDERS OF TH E CIT(A) FOR ALL THE CAPTIONED ASSESSMENT YEARS AND DIRECT THE ASSESSING OFFICER TO RECOMPUTE THE INCOME AS PER AFORESAID DIRECTIONS A ND AS PER LAW. 8. IN SO FAR AS THE APPEAL OF THE REVENUE FOR ASSES SMENT YEAR 2007- 08 IS CONCERNED, THERE IS NO MERIT IN THE SAME IN A S MUCH AS THE CIT(A) HAS MERELY DELETED THE AMOUNT ASSESSED BY THE ASSES SING OFFICER ON PROTECTIVE BASIS, EVEN THOUGH SUCH AMOUNT WAS ASSE SSED IN THE RESPECTIVE ASSESSMENT YEARS. THUS, IN SO FAR AS AP PEAL OF THE REVENUE FOR ASSESSMENT YEAR 2007-08 IS CONCERNED, THE SAME IS DISMISSED. 9. IN ASSESSMENT YEAR 2005-06, THE PLEA OF THE REVE NUE IS AGAINST THE ACTION OF THE CIT(A) IN ALLOWING TELESCOPING BE NEFIT AGAINST THE UNEXPLAINED EXPENDITURE FOUND NOTED IN THE SEARCH MATERIAL. IN THIS 11 ARTH HOUSING DEVELOPMENT PVT. LTD. CONTEXT, BRIEF FACTS ARE THAT THE SEARCH MATERIAL R EVEALED THAT IN ASSESSMENT YEAR 2005-06 CERTAIN EXPENDITURE OF RS.8 45.66 LACS WAS INCURRED, WHICH WAS NOT RECORDED IN THE REGULAR BOO KS OF ACCOUNT. THE ASSESSING OFFICER ASSESSED THE SAME TO TAX AS UNEXP LAINED EXPENDITURE UNDER SECTION 69 OF THE ACT. THE CIT(A) HOWEVER, A LLOWED BENEFIT OF THE RECEIPTS AVAILABLE WITH THE ASSESSEE OF THE EARLIER THREE YEARS OF 2002- 03, 2003-04 AND 2004-05. CONSEQUENTLY, THE CIT(A) RESTRICTED THE ADDITION MADE UNDER SECTION 69C OF THE ACT FOR UNEX PLAINED CASH EXPENDITURE TO RS.306.67 LACS AS AGAINST RS.845.66 LACS DETERMINED BY THE ASSESSING OFFICER. AGAINST SUCH A DECISION OF THE CIT(A), REVENUE IS IN APPEAL BEFORE US. 10. AFTER CONSIDERING THE RIVAL STANDS, WE DO NOT F IND ANY INFIRMITY IN THE DECISION OF THE CIT(A), WHICH IS OSTENSIBLY BAS ED ON THE FACTS EMERGING FROM THE RECORD. THUS, THE ORDER OF THE C IT(A) ON THIS ASPECT IS AFFIRMED AND REVENUE FAILS IN ITS APPEAL FOR A SSESSMENT YEAR 2005- 06. 11. RESULTANTLY, WHEREAS THE FIVE APPEALS OF THE AS SESSEE PERTAINING TO ASSESSMENT YEARS 2002-03 TO 2006-07 ARE ALLOWED, THE TWO APPEALS OF THE REVENUE PERTAINING TO ASSESSMENT YEARS 2005- 06 AND 2007-08 ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30/ 10/2015. SD/- SD/- (SANDEEP GOSAIN) (G.S. PANNU) JUDICIAL MEMBER ACCOUNTANT ME MBER MUMBAI, DATED 30 /10/2015 12 ARTH HOUSING DEVELOPMENT PVT. LTD. COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT , 2. THE RESPONDENT. 3. THE CIT(A)- 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI VM , SR. PS