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2022 (1) TMI 899 - HC - Income TaxUndisclosed income of the assessee for the purpose of Chapter XIV B of the Income Tax Act - search as well as survey and initiation of the proceedings under section 158BC read with section 158BD - assessment proceedings by determining the total and undisclosed income of the assessee - assessee is aggrieved by the addition made towards certain outstanding credits over a period of time payable to the dealers which amounts were treated as income under Section 41(1) - HELD THAT:- Admittedly, the assessee filed their return only after the conduct of search. Based on the same, the assessing officer computed the total and undisclosed income and made additions for the block period. In such circumstances, the assessee ought to have rebutted the same by giving cogent and reliable evidence, whereas they failed to do so. Therefore, they cannot be permitted to contend that based on the books of accounts furnished by them, the assessing officer made such additions. Further, the liabilities were shown in the books of accounts as outstanding credits and the same were not written back by the assessee and hence, the Tribunal rightly justified the additions made by the assessing officer as undisclosed income under section 41(1) of the Act, which could not be faulted with, in the opinion of this court. See A.R. ENTERPRISES AND COMMISSIONER OF INCOME-TAX VERSUS BR. SHAH AND OTHERS [2013 (1) TMI 345 - SUPREME COURT] as held for the purposes of computation of undisclosed income under Chapter XIVB, an assessee can rebut the Assessing Officer's finding of undisclosed income by showing that such income was disclosed in the return of income filed by him before the commencement of search or the requisition. In other words, when section 158BB(3) is read with section 158B(b), which defines undisclosed income, we reach the conclusion that for income to be considered as disclosed income, the same should have been disclosed in the return filed by the assessee before the search or requisition - No substantial question of law.
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