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2016 (10) TMI 418 - AT - Income TaxBlock assessment proceedings u/s 158BD - addition u/s 68 - double additions - Held that:- We find that the entire credits of ₹ 2,65,30,000/- in the bank accounts of four persons have already been added in the block assessment proceedings u/s 158BD of the Act dated 30.11.2006 in the hands of the assessee, in addition to adding the commission income thereon @ 1% amounting to ₹ 2,65,300/-. We also find that in the said block assessment order, the ld AO had given a categorical finding that the assessee is only providing accommodation entries and receiving only commission income thereon @ 1% . Moreover, the ld AO had also observed in the block assessment order supra that the ultimate beneficiary of all these bank transactions are only UIC group and not the assessee. These facts were not controverted by the revenue before us. Under these circumstances, we hold that there is no need to make any addition towards cash credit or commission income up to 07.05.2002 in the regular assessment proceedings for the Asst Year 2003-04 as it would only result in double addition. Hence, the addition u/s 68 of the Act is directed to be deleted. Accordingly, the ground No. 2 raised by the assessee is allowed. However, since the bank transactions upto the date of search i.e 7.5.2002 have been considered in the block assessment proceedings u/s 158BD of the Act and commission income thereon is taxed in the block assessment, the commission income from 8.5.2002 to 31.3.2003 needs to be taxed in the similar way. We deem it fit and appropriate to direct the ld AO accordingly to meet the ends of justice. - Decided partly in favour of assessee
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