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2015 (1) TMI 1356 - AT - Income TaxRevision u/s 263 - Unexplained credit - bogus sales - Held that:- A perusal of the assessment order reveals that the AO had given a categorical finding that the total credit in the assessee’s various bank accounts was amounting to ₹ 2122,27,57,495/- out of this a sum of ₹ 856,64,49,533/- had been treated as bogus sales for which sales bills were found and were duly impounded. However, the remaining sum of ₹ 1388,09,01,411/- had remained unexplained in spite of various opportunities given to the assessee. The AO had treated the same as unexplained income of the assessee and decided to bring it into tax in various assessment years. He also worked out the additions for different assessment years. However, he made the said additions on protective basis observing that the assessee had not been able to establish the source of these credits. He, however, made the addition of 5% of the said amount as commission income of the assessee on substantive basis. A perusal of the above findings itself reveals that the order of the AO was erroneous. In the absence of any evidence on the file as to source of the credits of the amount in question in the various bank accounts of the assessee, the AO had treated the said amount as unexplained income of the assessee. Once the AO had treated so, the AO was required to make the addition of this amount on substantive basis. Even without making the addition of the amount in question on substantive basis in any other persons’ account, the AO could not have made the addition of the amount on protective basis in the assessee’s account.CIT was justified in holding that the order of the AO was not only erroneous but also prejudicial to the interest of the Revenue. - Decided against the assessee.
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