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2023 (10) TMI 308 - ITAT KOLKATAAddition u/s 56(2)(vii)(b) - additional income - assessee has suo motu declared this amount post survey proceedings u/s 133A on the assessee - HED THAT:- We observe that the observation of the AO that the amount represented as additional income under section 57(2)(vii)(b) is untenable. Considering the overall scenario and facts that the assessee has disclosed sum without any basis and which was just a suo motu voluntary disclosure and the ld. AO has also not found any unexplained credit or source of money or asset to back such disclosure. We are of the view that the addition under section 56(2)(vii)(b) has to be adjusted and telescoped out of this suo motu voluntary disclosure of the assessee - Therefore, we are inclined to allow the Ground No. 1 of the assessee by setting aside the order of ld. CIT(Appeals) and directing the ld. Assessing Officer to give telescopic effect out of the suo motu disclosure. Ground No. 1 is allowed. Undisclosed income being the residue amount out of the disclosure made - HELD THAT:- Disclosure is made by the assessee without any basis in the form of undisclosed assets or undisclosed income or any unexplained credit in the books of the assessee. This addition has been made by the ld. AO on the ground that the assessee has surrendered Rs. 2,00,00,000/- in the instant assessment year vide letter dated 17.03.2014 filed after the survey operation was conducted on 11.12.2013. We are of the considered view and opinion that any disclosure made in the survey proceedings merely on the basis of statement recorded during survey is not enough to make the addition. There has to be corroborating material to make the addition. Accordingly, we are inclined to set aside the order of ld. CIT(Appeals) on this issue by allowing the ground no 2 of the appeal of the assessee.
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