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2016 (12) TMI 305 - AT - Income TaxAddition on unaccounted cash balance - Held that:- While deciding the appeal of CIMS Hospital Pvt Ltd, ld. CIT(A) was not authorized to add that amount in the case of Director who was not a party to the CIMS Hospital Pvt Ltd appeal proceedings. The subject matter before him was whether the amount was liable for addition in the case of CIMS Hospital Pvt Ltd or not. Since the ld. CIT(A) exceeded his jurisdiction in giving this direction which does not fall within the four corners of his powers enshrined in this behalf CIT(A) confirmed the addition not applying his independent mind and discretion; and merely upholding the addition on the ground that the CIT(A) in the case of CIMS Hospital Pvt Ltd has directed to make the additions, the same is confirmed. In our view, the confirmation of the addition cannot be upheld. Besides, the assessee discharged his burden by providing necessary cash flow statements and demonstrated that the transaction in question was reflected in the wealthtax return which was accepted by the Department. Therefore, in our view, this amounts to discharge of burden cast upon the assessee in this behalf. Further, the Department cannot blow hot and cold and take a divergent decision qua addition in wealth-tax and income-tax proceedings. Thus, the grounds of the assessee(s) are allowed on both the counts.
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