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TMI Blog2020 (5) TMI 158X X X X Extracts X X X X X X X X Extracts X X X X ..... f appeal: "1.That the Ld. CIT(A) erred in law and facts of the case and confirmed the addition made by the Ld. AO of income of LTCG Rs. 94,93,723/- to the total income of the assessee without considering the fact that the assessee has offered the same income for tax under IDS 2016. Thus, making the same income under double taxation. The action of Ld. CIT(A) is totally wrong on the facts of the case." 3. Brief facts as culled out from the records are that the assessee is an individual. She filed her return of income on 31.07.2014 showing total income of Rs. 2,56,610/-, after claiming exemption u/s 10(38) of the Act for Long Term Capital Gain from sale of share of M/s Kailash Auto Finance Ltd. at Rs. 94,93,723/-. Case selected for scrutiny ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Declaration Scheme) 2016 for A.Y. 2013-14 but could not succeed, as Ld. CIT(A) confirmed the addition made by the Ld. AO observing as follow: "3. As per the provision of section 196 of IDS 2016 scheme did not apply in relation to any undisclosed income chargeable to tax under the IT Act for any previous year relevant to the assessment year beginning on the first day of April 2017, where a notice u/s 142 or 143(2) or 148 153A or 153C of the Act were issued in respect of such assessment year and the assessment was pending. Hence in this case the assessment was pending and it was categorically concluded that the assessee had claimed bogus long term capital gain. The assessee wants the benefit of IDS 2016 in respect of assessment year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs for which no notice under above referred sections has been issued. Similarly in the case of Assessee, the undisclosed income declared under IDS 2016 was related to Assessment Year 2013- 14 however the notice issued pertains to Assessment Year 2014-15, therefore section 196 of IDS 2016 is not applicable on the Assessee. In addition to above, we further submit that the Assessee disclosed in Form 1 of description column that the undisclosed money was applied for earning income from long term capital gain and the said declaration by the Assessee was accepted by Principal Commissioner/Commissioner in Form 4 under IDS 2016 as on 15/02/2018. Please find enclosed Form 1 and Form 4. That the relevant abstract of FAQs of Circular 25 and 29 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me Tax Department on Form No.2 for the said declaration and taxes paid thereon relevant to A.Y. 2013-14. Further the assessee on form No.3 provided intimation of payment of taxes to the Income Tax Department with the bank details and serial of Challan along with amount placed at page No.12 of the paper book. Thereafter the Income Tax Department issued a certificate on Form No.4 to the assessee on 14.02.2018 at So. No.5 of this certificate four column are made. First column is serial number, second column is assessment year i.e. A.Y. 2013-14, 3rd Column of the amount of undisclosed income declared and accepted at Rs. 95,00,000/- and the 4th Column is for the "description of assets where undisclosed income declared in the Form of investment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... set, immovable asset, gold, jewellery or cash. Here, the nature of income need not be confused with the source of income. There is no need to indicate the source of income at all. In the column meant for nature of undisclosed income one has to write the nomenclature such as 'immovable property', 'moveable property', 'gold', 'jewellery' or 'cash' etc. This will enable the taxpayer to establish the link between the income declared under the scheme and the claim, if any, made in respect of such undisclosed income in the return of income filed subsequently or during any assessment proceedings. 13. In circular No.29 of 2016 dated 18 day of Agust 2016 following question No.2 and it s answer reads as follows: Question No.2: Whether the amount d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore, in the given facts and circumstances of the case, are of the considered view that the income offered by the assessee under IDS 2016 for A.Y. 2013-14 at Rs. 95,00,000/- has been rightly claimed as the source of the bogus Long Term Capital Gain managed by the assessee in A.Y. 2014-15 and thus, the bogus claim of Long Term Capital Gain for A.Y. 2014-15 has been rightly explained by the assessee byway of offering undisclosed income in A.Y. 2013-14 under the Income Declaration Scheme 2016. We, thus, set aside the orders of the both lower authorities delete the addition for Rs. 94,93,723/- and allow the sole ground raised by the assessee. 17. In the result, the appeal of the assessee is allowed. Order was pronounced in the open court on 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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