Question 1

What are the key legal issues in ITA Nos.788/Hyd/2020, ITA 466/Hyd/2020 and ITA 763/Hyd/2020?

Accepted Answer

1. Deletion of addition of Rs.176,11,00,000/- towards alleged on-money received for sale of land. 2. Estimation of profit at 16% on gross receipts.

Question 2

What are the facts of ITA Nos.788/Hyd/2020, ITA 466/Hyd/2020 and ITA 763/Hyd/2020?

Accepted Answer

The assessee company, TRINITY INFRAVENTURES LIMITED, filed its return of income for the assessment year 2010-11 on 28.11.2011. A search and seizure operation under Section 132 of the Income-tax Act, 1961, was conducted in the case of M/s. MBS Jewellers Private Limited and its group of cases on 11.03.2010. During the course of the search, certain documents were found and seized relating to TRINITY INFRAVENTURES LIMITED, which were seized vide Annexure A/MBSPL/PJT/PO-1/04 at pages 198 to 208, and the copy of the sale deed executed by Smt. R. Annapurna and Dr. P.S. Prasad in favour of M/s. MBS Impex Private Limited, which contains details of sale of property by the assessee company. Consequent to such search, notice under Section 153C of the Act, was issued and served on the assessee, and in response, the assessee filed its return of income on 28.11.2011 declaring total income of Rs.3,10,23,890/-. The case was selected for scrutiny and during the course of assessment proceedings, by considering the voluminous data and complexity involved in the books of accounts of the assessee, a special audit under Section 142(2A) was referred to for audit of the accounts of the assessee, and M/s. Ratnam Daveji, Chartered Accountants, was nominated by the Commissioner of Income Tax, Central, Hyderabad, who later submitted the Special Audit Report. The AO, after considering the relevant submissions of the assessee and also taking note of various incriminating material found during the course of

ITA Nos.788/Hyd/2020, ITA 466/Hyd/2020 and ITA 763/Hyd/2020

Parties Involved

Facts Summary

Legal Issues

Judgment Outcome

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