TMI Blog1999 (5) TMI 620X X X X Extracts X X X X X X X X Extracts X X X X ..... ouse as well as purchase of items of furniture and other articles along with the expenditure incurred on marriage of a member of HUF, were found. During the course of statement recorded under section 132(1), the assessee offered an unaccounted income of ₹ 21,30,000 which, according to the assessee, was earned by way of commission, etc., charged more than that was shown in accounts. Before the assessment order of 1990-91 was passed, the Assessing Officer issued notice for the assessment years 1988-89 and 1989-90. The assessee had filed return declaring income. However, the Assessing Officer was not satisfied, and he completed the assessment on 21-10-1992 for the assessment years 1988-89 and 1989-90 under section 147/143(3), after ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income of ₹ 21,30,000 inclusive of renovation expenses of residential house amounting to ₹ 13,80,000 and unaccounted marriage expenses amounting to ₹ 1,50,000 was offered for assessment in the assessment year 1990-91. However, subsequently after the examination of seized material it was found that some of the renovation expenses related to the assessment year 1989-90 and particularly the unaccounted marriage expenses of ₹ 3,05,200 was incurred during the assessment year 1989-90 but only a sum of ₹ 1,50,000 was considered for assessment during the course of statement recorded under section 132(4). Thus, undisputedly the unaccounted marriage expenses to the extent of (Rs. 3,05,200 - ₹ 1,50,000) ₹ 1,55 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The department having taxed the entire amount of income of ₹ 21,30,000 in the assessment year 1990-91, could not subject the same income to tax in the assessment years 1988-89 and 1989-90. Accordingly, the departmental authorities were not justified in making/sustaining the addition on account of renovation expenses of the house because both these amounts were included in the amount of ₹ 13,80,000 surrendered by the assessee for renovation of house in the assessment year 1990-91 in its return of income and it already stood taxed in the assessment year 1990-91 vide order dated 31-3-1992. As regards the addition on account of unexplained marriage expenses on the marriage of N was concerned, the assessee had offered only a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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