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2021 (6) TMI 268 - AT - Income TaxUndisclosed unaccounted expenditure and undisclosed income - addition of income in the hands of assessee or undisclosed and unaccounted income pertains to its company HELD THAT:- The hon'ble apex court's landmark decision in ITO v. Ch. Atchaiah [1995 (12) TMI 1 - SUPREME COURT] held long back that the Assessing Officer can and he must, tax the right person and the right person alone. By "right person" it is meant the person who is liable to be taxed according to law with respect to a particular income. By the connotation of "right person", it is meant the person who is liable to be taxed, according to law, with respect to a particular income. And that the expression "wrong person" is obviously used as an antithesis of the expression "right person" only. We observe that this assessee is the "managing director" of M/s. VNR Infrastructure Ltd. And that it is this latter entity which the fact is engaged in all the business activity(ies) and has been assessed separately throughout. A company is very a body corporate and a distinct entity apart from its director. We conclude in these circumstances that the Commissioner of Income- tax (Appeals) has rightly deleted these twin additions in the assessee/individual's hands since corresponding undisclosed and unaccounted income pertains to its company M/s. VNR Infrastructure Limited carrying out the business in its own name. We make it clear while holding so that the Revenue has not even indicated the fact above the company's assessment qua the very income(s). We thus see no reason to reverse the Commissioner of Income-tax (Appeals) detailed findings for these precise reasons.
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