2023 (1) TMI 888 - AT - Income Tax
Addition based on seized documents in search - Double addition - treat the cash outflow made by the assessee based on the said seized documents of pen drive / excel sheet wherein cash payments was reflected as unexplained expenditure made by the assessee - application before the Hon’ble Income Tax Settlement Commission (ITSC) and in that application, the transactions reflected in the said pen drive had been duly considered by them and income offered thereon - HELD THAT:- All the seized documents that were found during the course of search in Kamala group cases which includes the transactions belonging to the assessee in the form of excel sheet which is reproduced supra have been subject matter of detailed consideration by the PCIT in Rule 9 report filed before the Hon’ble ITSC. It is a fact on record that the said excel sheet had been duly considered by Shri Ravi S Bhandari in his application filed before the Hon’ble ITSC u/s.245C(1) of the Act and the same has been accepted by the Hon’ble ITSC vide their order u/s.245D(4) of the Act dated 20/09/2016.
When these facts are staring on us, we do not find any justifiable reason to sustain the very same addition emanating out of the very same seized documents in the hands of the assessee company herein. In other words, taxing a sum in the hands of the assessee company would only result in double addition. When Shri Ravi S Bhandari had already owned up the impugned transactions together with the said seized documents, there is absolutely no case for making addition in the hands of the assessee company herein. Hence, we have no hesitation in directing the ld. AO to delete the addition made in the hands of the assessee company herein. Accordingly, the ground Nos. 2 & 3 raised by the assessee are allowed.