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2016 (12) TMI 1605 - ITAT MUMBAIRevision u/s 263 - peak value of the amount lying in the undisclosed bank account not added to the assessee’s income for assessment year 2006-07 on protective basis - entire peak of US$ 21,51,725 (INR 9,57,07,316) was added on protective basis in assessment year 2007-08 - A.R. has stated that the addition on substantive basis has been admitted by the legal heirs/executors of the estate of late Shri V.C. Mehta, whereas the addition in question has been made in the case of the assessee only on protective basis Held that:- Since the executors of estate of late Shri V.C. Mehta have owned up the amount lying in the HSBC Bank and have paid the taxes thereupon and they have also given an undertaking to the Commissioner of Income Tax (Appeals) that they owned up the bank balances lying in the bank account of late Shri V.C. Mehta, hence, under such circumstances, the addition, if any, made on protective basis in the hands of assessee will not have any tax effect. Thus when the estate of late Shri V.C. Mehta, in whose case the additions have been made on protective basis, have owned up the amount lying in the bank account and have also given an undertaking to the Commissioner of Income Tax (Appeals) that they stand by the disclosure made by them in relation to the above said bank account and will not be claiming any refund of the taxes already paid except the inter-se adjustment of taxes paid amongst various assessment years, no useful purpose will be served in making a fresh assessment on protective basis in the hands of the assessee merely because that some of the income was to be added in assessment year 2006-07 instead of the entire addition made in assessment year 2007-08 on protective basis. Thus ustification in invoking the provisions of section 263 of the Act for passing the above said revision order by Ld. PCIT - Decided in favour of assessee.
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