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2015 (4) TMI 671 - AT - Income TaxValidity of assessment u/s 153C (ITA No. 503/Lkw/2013.) -Satisfaction recorded by Ao is not proper - Additions by AO based on petition before settlement commission - Issue of telescoping - Held that:- It is seen that in the present case, satisfaction was recorded by the A.O. of the searched person and the case is covered against the assessee by the judgment of Hon’ble Jurisdictional High Court rendered in the case of classic Enterprises [2013 (4) TMI 520 - ALLAHABAD HIGH COURT]. Since this judgment is of Hon’ble Allahabad High Court, it is binding on us and therefore, we are not discussing various judgments cited by learned AR as noted above. Hence, by respectfully following the judgment of Hon’ble Jurisdictional High Court rendered in the case of classic Enterprises, we decide this issue against the assessee. We have considered the rival submissions. We find that as per sub section (3) to section 245HA, the A.O. can use all material and other information produced by the assessee before the Settlement Commission. This is not in dispute that the assessee provided this information before Settlement Commission about his additional income. Since, the assessee did not provide the detail about the year in which, this income was earned by the assessee, the A.O. made substantive addition in A.Y. 2005 - 06 being search year and made protective addition in 1999 - 2000 to 2004 - 05 on protective basis. It is noted by learned CIT (A) in Para 5.2 and 5.2.1 of his order that the learned AR of the assessee himself made an offer before him that if the addition is confirmed, the same be confirmed in A.Y. 2005 - 06 on substantive basis. Learned CIT (A) accepted the same and accordingly confirmed the addition on substantive basis in A.Y. 2005 - 06 being search year. We do not find any infirmity in the same. In view of peculiar facts of the present case where the addition is made and confirmed on the basis of offer before Settlement Commission, which is not specific, it has to be accepted that part of such income might have been earned in these earlier years and hence, in view of these peculiar facts, we grant telescoping and direct the A.O. that the additions confirmed by learned CIT (A) in A. Y. 1999 - 2000 to 2003 - 04 as noted above should be considered as part of surrender before Settlement Commission and therefore, the net addition in this year is confirmed to the extent of ₹ 344000 only (Rs. 438500 - 94500). In rest all appeals, matter was identical to the above mentioned appeal. - Decided partly in favour of assessees.
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