Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2024 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (3) TMI 143 - ITAT VISAKHAPATNAMAddition on protective purposes - tax 20% of the withdrawals by the assessee from the firm - AR argued that the assessee has withdrawn these amounts from the capital account maintained with the firm - as in the case of the firm the income has been taxed based on the seized material and same amounts have been withdrawn by the assessee and the Ld. AO proposed to tax the assessee on protective basis - HELD THAT:- It is an admitted fact that 20% of the amount has been subjected to tax in the hands of the firm. It was also confirmed by the order of this Bench of the Tribunal in [2023 (8) TMI 1019 - ITAT VISAKHAPATNAM]. Therefore, the same amount cannot be taxed in the hands of the assessee on protective basis. It is a trite law that any income shall be subjected to tax only once in the hands of the assessee. We therefore find no merit in the argument of the Ld. Revenue Authorities and thereby direct the Ld. AO to delete the addition made on protective basis in the hands of the assessee. Decided in favour of assessee.
|