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2016 (5) TMI 233 - AT - Income TaxAdditions of undisclosed FD - Held that:- AO has made various additions of undisclosed FD in the hand of the assessee by framing the assessment under section 144 of the Act. The AO got the information of undisclosed FD/investment as a result of search of CBI at the premises of the assessee. All the addition were confirmed by the ld. CIT(A). However before us the ld. AR has submitted all the necessary supporting documents justifying the source of the investment/ FD that they were carried forward from the earlier years. In view of above we are inclined to reverse the order of the lower authorities and assessee’s ground is allowed. - Decided in favour of assessee. Addition on on substantive basis of Income declared by the daughters - Held that:- Income declared by the daughters of the assessee in their respective hand were taxed in the hands of the assessee on substantive basis. Now from the submission of the assessee, we observe that the same has been taxed in their individual names on substantive basis. The ld. DR has not brought anything on record contrary to the argument of ld. AR. and simply relied on the orders of authorities below. In view of above, we are inclined to reverse the order of the lower authorities and assessee’s ground is allowed.- Decided in favour of assessee. Addition of interest income being 10% of investment in the hands of his wife i.e. Amita Puri - Held that:- Out of the total amount of ₹ 26,84,104/- the investments are only to the extent of ₹ 6,09,171/- the rest are being receipts, expenditure and interest received. Tax has already been paid on the interest income received on the matured investments and this was offered to tax in the year such income was received, the details of which are given under the Chart for A/.Y. 2002-03 titled “TABULAR EXPLANATION OF INTEREST REFCEIVDED AND OFFERED TO TAX” which may be seen for AY 2002-03. In view of this, there is no question of payment of interest of ₹ 1,61,638//-. It is urged that this addition of interest may kindly be deleted. From the above we find that the wife i.e. Amita Puri of assessee has declared the income in her hand. The necessary details have also been furnished in the form of paper which is placed on record. In view of above we are inclined to reverse the order of the lower authorities and ground of assessee is allowed.- Decided in favour of assessee. Enhancing of interest income though the same has already been taxed in the hands of Amita Puri – wife of the assessee - Held that:- This interest income was not disputed by the AO at the time of assessment. However the ld. AR of the assessee submitted before us that the interest income for ₹ 5,00,600/- is actually the income of the wife (Smt. Amita Puri) of the assessee which is the part of the income declared by her for the AY 2002-03 for an amount of ₹ 16,01,520.00. Our attention drew to the page no. 50-52 of the paper book where the copy of the assessment order was placed. The ld. DR at the time of hearing did not bring anything on record contrary to the submission of the assessee. We find that the addition of the interest income in the hands of the assessee will amount to double tax. - Decided in favour of assessee.
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