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2017 (5) TMI 11 - ITAT KOLKATAUnaccounted investment - Disallowance on account of peak credit - set off the impugned peak credit while adding the peak credit in the subsequent year - Held that:- Admittedly the assessee was engaged in the business activity which was not disclosed to the income tax Department. Therefore the profit from such business activity and the fund invested in such business activity should be brought to tax. However on the examining the order of lower authorities we find that the addition on account of profit on undisclosed business was made in the assessment years 2007- 08 to 2009-10 only. But the addition on account of undisclosed investment was only made in the assessment year 2007-08. Therefore, there is no question of the set off of the peak credit added to the taxable income in the earlier years as no such addition was made in earlier years i.e. AYs 2004-05, 2005-06 and 2006-07. Therefore, we find no infirmity in the order of ld CIT(A). Hence, this ground of appeal of assessee is dismissed. Undisclosed investment in the land - Held that:- CIT(A) has given relief to the assessee in part by observing that double addition cannot be made on the basis of same impounded documents.Thus, it is also pertinent to note that once the addition has been made on the basis of impounded documents towards the profit and undisclosed investment as discussed above, then in our considered view the new addition on the basis of same impounded documents cannot be made. However, it is important to note that the impugned undisclosed investment for ₹ 27,55,198/- was made in the year under consideration whereas the amount in the impounded documents is of ₹ 20,97,870/- only. Thus from the above it is clear that the investment was made over and above the amount shown in the impounded documents in the year under consideration. Therefore, the balance amount of ₹ 6,57,328/- does not arise out of the impounded documents. Hence, we find no infirmity in the order of ld CIT(A) and therefore this ground of appeal of the assessee is dismissed.
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