Section 69B, read with sections 69C, 69 and 37(1), of the Income-tax Act, 1961 - Undisclosed investments (Investment on building)

IT : Where building was already sold by developer and alleged excess amount of investment on building was actually in nature of expenditure, net tax would be nil

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[2015] 55 taxmann.com 443 (Karnataka)

HIGH COURT OF KARNATAKA

Commissioner of Income-tax, Bangalore

v.

Suraj Towers, Vaishnavi Infrastructure (P.) Ltd.*

N.KUMAR AND B. MANOHAR, JJ.

IT APPEAL NO. 1098 OF 2008†

OCTOBER  13, 2014

Section 69B, read with sections 69C, 69 and 37(1), of the Income-tax Act, 1961 - Undisclosed investments (Investment on building) - Assessment year 2002-03 - Assessee-property developer filed valuation report of approved valuer in respect of construction cost of building at Rs. 1.13 crore while DVO valued same at Rs. 1.71 crore - Said building was already sold and excess amount of investment on building was actually in nature of expenditure - Whether unexplained income had to be set off against expenditure and net tax in hands of assessee would be nil - Held, yes [Para 9] [In favour of assessee]