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2016 (7) TMI 13 - ITAT BANGALORE

2016 (7) TMI 13 - ITAT BANGALORE - TMI - Estimation of business income without giving credit for the declaration made under the Voluntary Disclosure of Income Scheme [VDIS] - CIT (Appeals) has denied the benefit of declaration in the VDIS, 1997 on the ground that the assessee has failed to furnish the certificate issued by the competent authority under Section 68 (2) of VDIS, 1997 - Held that:- Merely because the concerned authority has not issued a certificate under Section 68(2), the fact of f .....

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alleged investment in household goods. - As it is clear from the concluding part of the Assessing Officer that while estimating the business income of the assessee, the Assessing Officer has not given any reference of household expenditure, telephone expenditure and investment in household goods. Therefore in the absence of any tangible material to show that the assessee has incurred the expenditure to the extent of ₹ 3 lakhs, the estimation made by the Assessing Officer is only a gue .....

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cash credit under Section 68 - Held that:- There is no dispute that the assessee declared total cash of ₹ 1,57,500 comprising of ₹ 67,500 for the Assessment Year 1996-97 and ₹ 90,000 for the Assessment Year 1997-98. Therefore the cash in the bank account of the assessee to the extent of ₹ 1,20,000 is covered by the declaration made by the assessee of cash to the extent of ₹ 1,57,500 and accordingly, no addition can be made on account of cash found with the assessee .....

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ficer on this count. - Decided in favour of assessee. - I.T.A. Nos.1348 & 1349/Bang/2015 - Dated:- 29-4-2016 - SHRI A.K. GARODIA, ACCOUNTANT MEMBER AND SHRI VIJAY PAL RAO, JUDICIAL MEMBER For The Appellant : Shri K.Y. Ningoji Rao, C.A. For The Respondent : Dr.P.K. Srihari, Addl. CIT (D.R.) ORDER Per Shri Vijay Pal Rao, J.M. : These appeals by the assessee are directed against the composite order of Commissioner of Income Tax (Appeals) dt.22.7.2015 for the Assessment Years 1996-97 & 1998-99 r .....

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nd without taking cognizance of the declaration made by the Appellant under the VDIS u/s. 65 of the Finance Act, 1997 and as such the same is liable to set aside. 3. The Learned Appellate Commissioner erred is upholding order of the Respondent Officer assessing the total income of the Appellant for the A.Y.1996- 97 at ₹ 3,OO,OOOj- without giving credit for the declaration made under the VDIS u/s 65 of the Finance Act, 1997, just because the authorities have not yet issued the Certificate u .....

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and unlawful and as such is liable to set aside. 6. That the impugned levy of interest of ₹ 1,36,085 u/s. 234A is liable to set aside in so far as the appellant is not liable there for. 7. That the impugned levy of interest of ₹ 1,43,585 u/s.234B is liable to set aside in so far as the appellant is not liable there for. 3. The only issue raised by the assessee for the A.Y. 1996-97 is regarding addition made by the Assessing Officer by estimating the business income of the assessee at .....

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gly, the Assessing Officer proceeded to complete the assessment ex-parte under Section 144 r.w.s. 147 of the Act. The Assessing Officer noted that on the basis of information available and as per the statement recorded under Section 131 by the DDIT, Pune dt.11.3.2004 in the central prison premises the assessee admitted the total income of ₹ 50,000 from the business of bricks. The Assessing Officer further noted that taking into consideration the assessee s household expenses and telephone .....

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nded before the CIT (Appeals) that the assessee had already declared income of more than ₹ 3 lakhs in the VDIS, 1997 and therefore no further addition can be made as per the provisions of section 64 of the VDIS, 1997. The CIT (Appeals) did not accept the contention of the assessee and confirmed the action of the Assessing Officer. 4. Before us, the learned Authorised Representative of the assessee has referred to the income declared by the assessee for the various years under VDIS, 1997 an .....

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ed and notified by the Govt. of India. Thus it is pleaded that if the credit of the income already declared under VDIS, 1997 is given to the assessee then no addition can be made by estimating the business income of the assessee to the extent of the said declaration made. 5. On the other hand, the learned Departmental Representative has submitted that in the VDIS, the assessee has declared income in respect of the investment in the land, motor cycle and cash whereas the Assessing Officer has mad .....

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VDIS, 1997 on the ground that the assessee has failed to furnish the certificate issued by the competent authority under Section 68 (2) of VDIS, 1997. It is pertinent to note that the assessee disclosed the income under the VDIS,1997 by making an application vide acknowledgment dt.29.12.1997 duly issued by the department. The fact of filing the application and disclosure of income under VDIS, 1997 has not been disputed by the department. It is not the case of the department that the application .....

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the ground of household expenses and household investment of goods but the finding of the Assessing Officer is vague without giving any details of household expenditure and the alleged investment in household goods. The relevant part of the Assessing Officer at para 4.1 as under :- It is seen from above details that for the A.Y. 1996-97 the assessee has admitted total income of ₹ 50,000 from the business of bricks. Taking into consideration, the assessee's household expenses and teleph .....

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ome from the business in brick is estimated at ₹ 3,00,000 for the A.Y. 1996- 97. As it is clear from the concluding part of the Assessing Officer that while estimating the business income of the assessee, the Assessing Officer has not given any reference of household expenditure, telephone expenditure and investment in household goods. Therefore in the absence of any tangible material to show that the assessee has incurred the expenditure to the extent of ₹ 3 lakhs, the estimation ma .....

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ment year under the Income Tax Act, if the following conditions are fulfilled namely :- (i) the declarant credits such amount in the books of account, if any, maintained by him for any source of income or in any other record, and intimates the credit so made to the Assessing Officer; and (ii) the income tax in respect of the voluntarily disclosed income is paid by the declarant within the time specified in section 65 or section 66. (2) The Commissioner shall, on an application made by the declar .....

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sessment is liable to set aside in so far as the same is illegal, unlawful, improper, irregular and opposed to law and facts and circumstances of the case. 2. The Learned Appellate Commissioner erred is upholding order of the Respondent Officer erred in adding a sum of ₹ 1,26,723/- (Rs.1,26,850) to income of the Appellant, the same being the alleged unexplained deposit made by the Appellant in to an Banking Account, with complete disregard to the facts of the case and as such the impugned .....

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723 on account of deposit in the Savings Bank Account of the assessee and the same was brought to tax as unexplained cash credit under Section 68 of the Act. The assessee challenged the action of the Assessing Officer before the CIT (Appeals) but could not succeed. 9. Before us, the learned Authorised Representative pointed out that for the Assessment Year 1997-98, the assessee declared a sum of ₹ 90,000 under the VDIS, 1997 on account of cash and further a sum of ₹ 67,500 was declar .....

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