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2020 (3) TMI 609 - HC - Income TaxAssessment u/s 153A - Addition made on account of disclosure of undisclosed income made u/s 132(4) - client code modifications for an unusually high number of times - profit/loss has been worked out with reference to the “old clients” instead of “new clients” - diversion of profit - HELD THAT:- It is apparent that the AO had made addition in the hands of the assessee on the basis of disclosure made by Shri Nayan Thakkar by bifurcating the amount of ₹ 12 crore into three parts, ₹ 8 crore in the hands of Kunvarji Finance Private Limited, ₹ 2 crore in the hands of Shri Nayan Thakkar and ₹ 2 crore in the hands of the assessee as amount received for providing client code modification. Assessing Officer has held that ₹ 2 crore was received by the assessee for providing the client code modification and he has attributed this amount year-wise in the ratio of client code modifications, such addition is not based on any material other than the disclosure made by Shri Nayan Thakkar. The Assessing Officer has merely held that an amount of ₹ 2 crore out of the amount disclosed by Shri Nayan Thakkar has been received by the assessee from the clients by aiding them by suppressing their profits by way of diversion of profits through the methodology of client code modifications. Contention of the revenue that the addition with regard to client code modifications was subsumed in the addition made on account of non-disclosure made under section 132(4) of the Act, does not merit acceptance - Decided in favour of assessee.
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