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TMI Blog2020 (2) TMI 413X X X X Extracts X X X X X X X X Extracts X X X X ..... addition of Rs. 14,15,000/- made by the A.O. on account of alleged disclosed cash receipts. b) For that the Ld. CIT(A) ought to have given telescoping benefit to the above mentioned income of Rs. 14,15,000/- against the income of Rs. 45,00,000/- offered during the course of survey. 2. (a) For that on the facts and in the circumstances of the case, Ld. CIT(A) was not justified in confirming the addition of Rs. 3,36,000/- made by the A.O. on account of alleged undisclosed rental income. (b) For that the Ld. CIT(A) ought to have held that the said income of Rs. 3,36,000/- is chargeable to tax under the head" Income from House Property". (c) For that the Ld. CIT(A) ought to have granted the benefit of standard deduction @ 30% of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntry of Rs. 14,15,000/- could not find mention in any of the cash books (two proprietorship concerns and of the business of transport). After considering the reply of the assessee, according to AO, the assessee initially has tried to explain that the diary belongs to a staff who was maintaining records for the assessee and was also having his own business. Thereafter, the assessee also stated that this amount of Rs. 14,15,000/- was most probably collection from transport receipt which has been declared and included in the P&L Account. According to AO, the above explanation of the assessee is nothing but a weak endeavor to cover up the undisclosed receipt in the disguise of transport receipt and against this receipt too, initially he tried t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee during survey has offered Rs. 45 lacs as lump-sum for this assessment year as undisclosed income from transportation business, this amount of Rs. 14,50,000/-has to be telescoped with the overall declaration of Rs. 45 lacs and he relied on the judgment of the Hon'ble Supreme Court in the case of Anantharam Veerasinghaiah & Co Vs. CIT reported in 123 ITR 457 which was followed by the Hon'ble Bombay High Court & Punjab & Haryana High Court in the cases of CIT Vs. Jawanmal Gemaji Gandhi reported in 151 ITR 353 and CIT Vs. Prem Chand Jain reported in 189 ITR 320 respectively wherein it was held as follows: "8. There can be no escape from the proposition that the secret profits or undisclosed income of an assessee earned in an e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n but must be regarded as pointing to the receipt of undisclosed income earned during the assessment year under consideration." 6. We find force in the argument of the Ld. AR and relying on the decision of Anantharam Veerasinghaiah & Co. and other case laws (cited supra), we note that since the assessee during survey operation on 16.01.2013 had already offered undisclosed income of Rs. 95 lacs which includes Rs. 45 lacs for this assessment year and since all other entries found in the diary SKS-5 has already been tallied with the cash book, we are of the opinion that the assessee has been able to give a plausible explanation to this amount of Rs. 14,50,000/- dated 18.06.2012 since this amount is entered in the cash book prior to survey an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any books of accounts. According to AO, as the assessee did not maintain any books of income in respect of transport business, there is no scope of verifying the same so, he considered that the assessee had not shown this rental income of Rs. 3,36,000/- in his income. Therefore, he added back the said sum of Rs. 3,36,000/- to his total income. Aggrieved, assessee preferred an appeal before the Ld. CIT(A) who confirmed the action of AO. Aggrieved, assessee is in appeal before us. 9. We have heard rival submissions and gone through the facts and circumstances of the case. We note that the assessee had received rental income of Rs. 3,36,000/- in this assessment year which has been rightly taxed by the AO. However the only limited prayer of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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