Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (12) TMI 297 - AT - Income TaxAddition u/s 69A - unaccounted income of the assessee company - Double addition - whether the receipt of ₹81 lakhs against the sale of shops needs to be taxed in the hands of the assessee? - HELD THAT:- Firstly, in the hands of director of the company namely, Shri Dhirajlal Sanghvi has included the impugned amount for working out the undisclosed income based on search documents in his individual capacity. Secondly, the AO has added the sum of ₹81 lakhs representing the receipt against the sale of shops in the hands of the assessee. Thus, the inference drawn is this that the receipt of ₹81 lakhs has suffered tax 2 times which is not desirable under the provisions of law until and unless it is specifically provided. In our considered view, once the AO has reached to the conclusion that the impugned income belongs to the assessee than he was under the obligation to reduce the same from the income of the director. But the AO has not done so despite the fact that the receipt of 81 lakhs was included in the cash flow statement of the director was also admitted by him (the AO) in his order AO was under the obligation to reduce the sum of 81 lakhs from the income of the director in the situation where he proposed to add the same in the hands of the assessee. But the AO has not done so despite having sufficient information in his hand. As such the action of the AO has resulted the double addition of the same income. In the case on hand, the assessee has claimed that receipt of ₹81 lakhs has already been considered in the hands of the director which was not disputed by the authorities below. It implies that owner of the receipt of ₹81 lakhs was the director of the company and not the assessee. Accordingly, the assessee cannot be held the owner of the receipts of ₹81 lakhs and consequently the impugned receipt cannot be made subject to tax in the hands of the assessee under the provisions of section 69A of the Act. - Decided in favour of assessee.
|