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2023 (5) TMI 119 - AT - Income TaxDeduction u/s. 80IB(10) - assessee’s declaration of additional income - assessee has failed to prove the source of the cash payment along with another cash payment - A.O. disallowed the claim of deduction u/s. 80IB(10) on the said additional income for the reason that the assessee has filed its original return of income after claiming the deduction u/s. 80IB(10) and since the unaccounted cash receipts has not been offered for tax and the assessee has also not claimed any deduction on the impugned cash receipts - HELD THAT:- As evident that the assessee has made a new claim on the additional income declared by the assessee, pursuant to the search and seizure action. If not for the search action, the additional income would not have been declared by the assessee and perhaps there will be no claim of deduction u/s. 80IB for the same. Assessee has failed to substantiate the fact that the impugned amount pertain to income of the project which was eligible for deduction u/s. 80IB - The assessee has failed to discharge its onus in proving the source of the impugned income. No doubt there has been suppression of the actual income for the purpose of evading tax. Nevertheless, various decisions of the higher forums have held that the assessee is entitled to claim deduction u/s. 80IB(10) on additional income declared by the assessee subsequent to the search proceedings. Assessee’s case would not fall under those decisions for the reason that the assessee has failed to substantiate the source of income and whether it pertains to business income of the assessee was not corroborated by evidence. The decision relied upon by the assessee in the case of Sheth Developers (P) Ltd. [2012 (8) TMI 159 - BOMBAY HIGH COURT] does not hold good for the present case wherein the A.O. did not have a dispute that the undisclosed income was out of business activity of the assessee. Decided against assessee.
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