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2013 (8) TMI 732 - AT - Income TaxBlock assessment - Section 158BC and 158BD - amount in the Bank Account and fixed deposit as unexplained credit - validity of initiation of proceedings u/s 158BC and applicability of the provisions of section 68 -Held that:- a mere declaration by someone under VDIS is not sufficient being a satisfactory explanation of cash credit appearing in the books of the assessee which is subjected to further verification and examination to find out the true nature and source of such amount. Further, the declaration made by the claimants can be considered only with respect to those cases where the declaration under the VDIS as well as the deposits in the Bank Account are in the same name. A declaration made by a person under the VDIS of certain amount and then made a claim regarding the deposit with the Bank which is not in the name of such person cannot be considered as an explanation u/s 68 of the Income Tax Act. Therefore, the declaration under VDIS can be considered for further examination and verification for the purpose of explanation in respect of deposits in the Bank Account and FDR only with respect to the cases where the declaration and deposit are in the same name and not in the fictitious name. Appraisal report is not a relevant and cogent material to be considered for assessment purposes. What is the material is the evidence and information as well as books of account detected during the course of the search and seizure proceeding and subsequent investigation. Deduction u/s 80P - Held that:- where the addition has been made u/s 68 with respect to the undisclosed deposits, therefore, the benefit of Section 80P is not available on such unexplained income. Matter remanded back with the direction to AO that, if the deposit and the declaration in the VDIS are in the same name and pertains to the same time/year then it can be considered as an explanation subject to verification of the correct name and identity of the depositor. The declaration of income under VDIS post search and seizure action but name of the declarant does not match with the name of the depositors in the account, the same would not be considered as relevant evidence.
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