Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2018 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (7) TMI 2340 - GUJARAT HIGH COURTAddition on account of peak of negative cash as undisclosed investments - benefit of telescoping - Whether the Appellate Tribunal [2018 (2) TMI 2112 - ITAT AHMEDABAD] has erred allowing benefit of telescoping the original disclosure made against negative cash balance in books of accounts which was never a part of the disclosure made by the assessee in the return of income especially when F.D.R. are not part of books of accounts of the assessee? Assessee submitted that such negative balance was on account of payment made out of the unaccounted income, and therefore, it was submitted that when the entire unaccounted income found during the search was offered as a part of the overall disclosure, the same cannot be added in the total income as undisclosed investment. HELD THAT:- It is required to be noted that the Tribunal has rightly observed that such negative balance was made on unaccounted income and when necessary entries were made in the books of accounts, it is bound to result in negative cash balance. We are in complete agreement with the view taken by the learned Tribunal. Considering the aforesaid facts and circumstances of the case and more particularly when the entire unaccounted income, which was found during the search, was offered as part of overall disclosure, Tribunal has rightly held that the assessee shall be entitled to the benefit of telescoping of negative cash balance against the disclosure made. Tribunal has rightly allowed the assessee the benefit of telescoping the original disclosure made against the negative balance in the books of accounts. Decided against revenue.
|