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2022 (7) TMI 110 - ITAT CHENNAIUndisclosed income - Unexplained expenditure u/s 69C - additional Income towards cost of purchase of movie - order passed u/s.143(3) r.w.s. 153B(1)(b) - CIT-A deleted the addition - as per AO assessee had declared additional Income over and above its regular income during the course of search proceedings u/s.132 - HELD THAT:- We ourselves do not subscribe to the reasons given by the Assessing Officer for the simple reason that once there is no dispute about additional income credited into the profit and loss account, then the AO cannot make further addition on said undisclosed income merely for the reason that the assessee has incurred loss for the year even after undisclosed income - assessee has incurred huge expenditure for the movie Thalaivaa subsequent to the period of search. Further, additional income offered during the course of such is also on account of cost of purchase of movie Thalaivaa. Therefore, once income is credited to the profit loss account, corresponding expenditure relatable to said income also needs to be debited into the profit loss account. In this case, the assessee has done exactly the same which resulted in loss for the year under consideration. In fact, the learned CIT(A) has considered detailed written submissions filed by the assessee, including financial statements and observed that on the additional income offered during the course of search, the assessee has credited into books of accounts for the relevant financial year. The said findings of the CIT(A) goes uncontroverted. The revenue fails to bring on record any contrary evidences to counter the findings of fact recorded by the CIT. Therefore, we are of the considered view that there is no error in the reasons given by the learned CIT(A) to delete additions made towards undisclosed income found during the course of search. Hence, we are inclined to uphold order of the learned CIT(A) and dismiss appeal filed by the Revenue.
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