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2022 (12) TMI 940 - AT - Income TaxExcess deduction claimed u/s 80U - unexplained money u/s 69A - A.O. was silent about the section under which the addition was made - AO has calculated tax u/s 115BBE - HELD THAT:- Assessee has not challenged the additions made by the AO u/s 80U and 80G of the Act, but has only challenged the computation of tax liability by the AO u/s 115BBE - With respect to the first contention of the assessee that unless there is a specific finding that addition under section 80U is made u/s 68 or 69 then tax cannot be imposed under section 115BBE of the Act, we are in agreement with the contention of the assessee that once the AO has not invoked the provisions of section 68 to 69 tax cannot be imposed under a deeming provisions of section 115BBE - In the instant case, AO made disallowance of deduction claimed u/s. 80U (permanent disability) of the Act but did not do any discussion as to how the case of the assessee is covered by the provisions of section 68 or 69 of the Act so as as to compute tax liability u/s. 155BBE. Non production of receipt as Unexplained money u/s 69A - Whether ncorrect claim of donation under section 80G cannot be made under section 69A? - HELD THAT:- As we observe that section 69A of the Act can be invoked only in case where the assessee is found to be the owner of any money, bullion, jewellery or other valuable article which is not recorded in the books of account and the assessee offers no explanation about the nature and source of acquisition of such money, bullion, jewellery or other valuable articles. Therefore, AO has erred in facts and in law in invoking the provisions of section 69A in respect of incorrect claim of deduction under section 80G - Accordingly, since provisions of section 69A cannot be invoked in respect of disallowance made under section 80G and without a specific finding that the assessee is in possession of any unexplained money, bullion, jewellery or other valuable article in his possession, accordingly, AO cannot compute tax liability under section 115BBE with respect to disallowance for incorrect claim u/s 80G. Appeal of the assessee is allowed.
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