Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2015 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (2) TMI 254 - DELHI HIGH COURTIncome from undisclosed sources - assessee's entitlement to the benefit of Section 44AF as had voluntarily disclosed receiving Rs. 16,07,240/- during the course of the assessment - assessee urged that the AO made no effort to discern as to the character of the amounts and that some of them at least constituted expenses - Held that:- In the present case the assessee had sought the benefit of Section 44AF but the revenue found later that the amounts deposited in its account were far and excessive than what was disclosed. That the assessee did not dispute the deposit of ₹ 16 lacs ipso facto would not absolve him from failing to disclosed it in the first instance. The same reasoning would apply for the other amount of ₹ 31,29,880/-. So far as the assessee’s explanation that some of the entries pertained to expenditure goes, the AO observed that the assessee did not maintain any books of accounts and produced any supporting document. His evidence was endorsed by the CIT (A). The CIT(A), however, took note of all the circumstances and confined the relief to the extent that the assessee had sought and justified. The ITAT’s decision, which has merely stated the CIT(A)’s finding and does not contain any reasoning, appears to be guided by the decision on the assessment of other years. Furthermore, the ITAT was conscious of the fact that this decision favouring the assessee was perhaps unsupportable in law, as is evident from its observation in para 8 that the impugned order would not be quoted as a precedent. ITAT’s order cannot be sustained. It is accordingly set aside. The question of law is answered in favour of the Revenue.
|