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2023 (4) TMI 580 - CALCUTTA HIGH COURTBlock assessment - Addition in hands of assessee on protective purpose - linkage of the assessee’s undisclosed income as disclosed in the block return and the transactions in the bank account of PEL and KEW - as per Tribunal AO in the original block assessment made in the year 1998 has made substantive addition in the hands of Shaw Wallace and since the case of Shaw Wallace has been remanded back to the assessing officer for reframing the block assessment and other assessments, the addition made on the assessee was on protective basis - HELD THAT:- Order passed by the tribunal elaborate exercise has been done by the tribunal to examine the details produced by the assessee to return a finding of fact that the money has been transferred to the two entities are from the bank accounts of the two said persons. Thus, the tribunal rightly concluded that the protective assessment was not warranted in the hands of the assessee because the assessee has been able to discharge the onus for showing the nature and source of credit entries in the bank account of KEW, PEL as well as, in the bank accounts of N.C. Jain and P.L. Mittal which in turn are sourced from Shaw Wallace and its subsidiaries. As evident that the source of money for Shaw Wallace and subsidiaries was in turn from ICDS which promoted the assessing officer to disallow in the hands of Shaw Wallace interest expenditure to the tune of Rs. 67.65 crores and therefore the addition to the tune of Rs. 12.41 crores made in respect of credit entities in the bank accounts of the two entries are unjustified and rightly directed the same to be deleted. Thus, we find that the tribunal after verifying and examining the factual position has granted relief to the assessee and the revenue has failed to make out a case to set aside the order passed by the tribunal. Substantial questions of law are answered against the revenue.
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