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2013 (12) TMI 1055 - AT - Income TaxUnexplained purchases in cash u/s 69 – Held that:- The partner of the assessee firm had made admission that this amount is out of books and pertains to this assessee - But he has already surrendered this income in his hand and has paid taxes thereon and the department has accepted the same - Legally one income cannot be taxed twice or in two hands - This can be treated as a bonafide mistake of the deponent as the group is one and having different entities and he is a common partner in them - The honest surrender must be given due credit to show tax-friendly attitude – Decided in favour of assessee. Undisclosed cash purchases/ sales – Held that:- Even if the books are not treated as reliable and can be rejected - The separate addition on account of undisclosed purchases/sales is likely to enhance the declared g.p. rate - The declared gross-profit has to be accepted – Decided in favour of assessee. Uaccounted sales – Held that:- many unaccounted cash sheets relating to this group were found from the possession of Shri N.K. Malani - The outcome of all cash transactions between the inter-group concerns was comprised in the cash sheet and the income as per that document having been already considered in the individual assessment of Shri N.K. Malani, who happens to be a partner in both the firms - There is no scope to make any further addition on account of either unaccounted purchases or unrecorded sales, as the entire transactions of the group stand covered under the surrender of cash balance made by the common partner Shri N.K. Malani – Otherwise it would tantamount to a double addition which is not contemplated by the Act – Decided in favour of assessee.
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