Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (8) TMI 119 - AT - Income TaxAssessment u/s 153A - Addition of peak credit - HELD THAT:- Nowhere the Assessing Officer has demolished this claim of the assessee which means that the AO has inherently accepted the contention of the assessee that the disclosure was at the behest of the tax authorities and calculation of peak credit was also at the behest of the tax authorities. We have carefully examined the computation of income for A.Y 2007–08 and under the head ‘income from other sources’ at item L – “Other Income”, the assessee has shown income of ₹ 2,23,68,007/–. Once the assessee has returned the undisclosed income and paid taxes thereon, in our considered opinion, there should not be any quarrel to bifurcate the disclosed amount in two A.Ys when tax rate in both the A.Ys is the same and there is no loss to the revenue. We are of the considered view that the revenue authorities should desist from such litigation. Considering the relevant documentary evidences, we do not find any merit in bifurcating the income in two A.Ys when the assessee has paid taxes in A.Y 2007–08. Making the addition of same income in two A.Ys definitely amounts to double taxation. We, accordingly direct the Assessing Officer to delete the addition. Interest on the balances in his bank account with HSBC, Geneva - AO assumed that in India a Savings Bank account holder earns interest at the rate of 4%, therefore, applying the same rate, AO made the impugned addition - HELD THAT:- Action of the Assessing Officer defies the taxability of concept of real income. The undisputed fact is that in the alleged sheets of bank deposits received from the French government under DTAC, there is no mention of any interest paid by the bank to the assessee. Therefore, it is illogical to compute interest and that too at the rate prevailing in India. Since there is no documentary evidence to support the presumption of the Assessing Officer, we do not find any reason to interfere with the findings of the ld. CIT(A).
|