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2016 (7) TMI 269 - AT - Income TaxUndisclosed business - entitlement to telescoping benefit - Held that:- We find lot of force in the arguments of the Learned AR that the profit determined is nothing but the income earned by the assessee from his undisclosed business. This receipt is outside the books of the assessee. Correspondingly, any payments / investments made outside the books of the assessee would be entitled for telescoping and hence we direct the AO to delete the additions made towards investment in security deposit with M/s Ultratech Cement Ltd and difference in bank balance. Similarly we hold that since the profit determined at ₹ 5,81,730/- would be profit from undisclosed sources, there should not be any separate additions made towards excess purchases and difference in sundry creditors balances as the same are to be construed only for the undisclosed businesses. The Learned DR was not able to bring any contrary evidence to this effect before us. Hence we direct the AO to delete the additions made towards undisclosed purchases and towards difference in sundry creditors balances. Addition towards cash deposits made by the assessee in the Savings Bank Account - Held that:- . We find that both the parties have agreed for setting aside of this issue to the file of the Learned AO. We accordingly direct the Learned AO to compare the turnover disclosed by the assessee in its regular books and in the returns and compare the same with the cash deposits made in the bank account with Axis Bank. If the turnover disclosed is more than the cash deposits with Axis Bank, then no addition need to be made. If the turnover disclosed is less than the cash deposits, then the profit percentage on the difference amount is to be estimated and taxed accordingly. Hence the grounds raised by the assessee are allowed for statistical purposes.
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