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2016 (5) TMI 46 - AT - Income TaxAddition on account of undisclosed net profit - difference in sales turnover - Assessment u/s 153C - Held that:- There was a bonafide mistake committed by the assessee in filing the original return of income of AY 2008-09 filed on 27.07.2009 which was rectified by it by filing revised return on 30.09.2009 even before receiving the notice u/s 153C dated 18.01.2010. Return of Income for AY 2009-10 declaring a total income of ₹ 4,75,47,402/- was filed on 30.09.2010 on the same day when the revised return of income was filed for AY 2008-09. The Assessing Officer simply relied upon the statement of third party recorded on 17.07.2009 during the search in the case of Royal group and on the basis of unaudited statements found with the third party. He has not challenged the audited accounts filed by the assessee along with the Return of Income. He has also not excluded the same sales proceeds in AY 2009-10, which amounts to double taxation of the same amount of income relatable to same sales proceeds. In view of above, the Assessing Officer was not justified in making addition of to the total income of the assessee for the year under consideration on account of difference in sales turnover in unaudited accounts and audited accounts, particularly when the assessee had already offered corresponding income in AY 2009-10 and assessed u/s 143(3) r.w.s. 153C by the same Assessing Officer. Thus, the addition was rightly deleted by the CIT(A). These factual and reasoned findings of the CIT(A) need no interference from our side - Decided in favor of assessee.
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