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2014 (11) TMI 1006 - AT - Income TaxAddition on account of promissory note found at the time of search - telescoping benefit to assessee - Held that:- The assessee has filed detailed source and application of undisclosed income of the assessee at page no.56 of its compilation wherein after application of the undisclosed income, the assessee was left with ₹ 29.45 lakhs as cash and other advances etc. We find that the Revenue could not controvert single item of source and application as shown in this chart filed by the assessee. In these facts and circumstances of the case, we find that where on one hand the CIT(A) has rightly confirmed the case of the Revenue that the assessee had given loan/advances of ₹ 50 lakhs for short time, just before the date of search, out of its undisclosed income available as cash, and likewise, in our considered view, the CIT(A) was justified in holding that the assessee should be given telescoping benefit on this amount against the availability of cash, and since the cash was available to the extent of ₹ 29.45 lakhs, the CIT(A) has rightly accepted the assessee’s explanation to the extent of ₹ 29.45 lakhs and the addition made by the AO was restricted to ₹ 20.55 lakhs. We find that the CIT(A) has passed a well reasoned speaking order on this issue, and accordingly, there being no mistake in the order of the CIT(A) on this issue, the same is confirmed - Decided against revenue
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