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2013 (4) TMI 41 - ITAT AHMEDABADAddition on account of construction activities, account of Misc. Receipts , unaccounted cash receipts, unexplained investment in vehicles,cash found and seized in various premises during the course of search, income of six entities taxed substantively in the hands of the assessee - Search conducted at the premises of Patel group (AOP) - It was the contention of the assessee that, since the income added by the AO in the assessment year 1987-88 was due to the construction of projects either on the basis of disclosure of the assessee or on the basis of accretion of wealth for the period 1980- 81 to 1986-87, this amount cannot be added once again in the assessment year 1987-88 - Held that:- The contention of the assessee is quite reasonable. If the amount of Rs.1,42,01,312/- forms part of the disclosure of Rs. 4.5 Crores for the period 1980-81 to 1986-87 based on the principle of accretions of wealth then unless there is a fresh accretion of wealth, during the assessment year 1987-88 the same amount cannot be once again added to the income of the assessee in the assessment year 1987-88, which will amount to double taxation. However this aspect requires verification at the AO's level based on the materials on record with the Revenue in hand and therefore remit back the matter for such limited purpose. No income shall be taxed in the hands of the assessee twice without the operation of law and if such circumstance prevails it will lead to miscarriage of justice. Assessee's claim to allow credit of the taxes paid in whose income were clubbed in the assessee rejected - Held that:- Assessment in the hands of the AOP is a substituted assessment for all the group entities. In this circumstance, the assessment of all group entities will not survive and obviously taxes if any paid by those entities for the years under appeal has to be given credit while computing the tax liability of the assessee AOP. The learned AO is directed to pass such necessary orders for giving tax credit to the assessee subject to verification and in accordance with law. Inclusion of proportionate income assessed for the AYs 1987-88 and 1988-89 in spite of specific direction of the CIT(A) which was not reversed by the Tribunal - Held that:- As the additions made for the assessment year 1987-88 and 1988-89 by invoking the provisions of section 150 of the Act this ground raised by the assessee has become redundant.
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