TMI Blog2023 (10) TMI 308X X X X Extracts X X X X X X X X Extracts X X X X ..... uch 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 mad e - 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e amount out of the disclosure made. 3. Brief facts of the case are that the assessee filed his return of income on 30.11.2014 declaring total income of Rs. 82,53,190/-. The case of the assessee was selected for scrutiny and statutory notices were duly issued and served upon the assessee. It is pertinent to state that the assessee is a proprietor of M/s. Ramkrishna Cement Works, a trading concern of ceramic tiles and sanitary wares. During the year, a survey under section 133A of the Act was conducted on the assessee on 11.12.2013 and it was found that the assessee has made investments in various lands over a period of time. After the survey, the assessee vide letter dated 17.03.2014 disclosed additional income equal to Rs. 4,16,00,000/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee on the ground that the assessee has suo motu declared this amount post survey proceedings u/s 133A of the Act on the assessee. 5. We have heard the rival submissions and perused the relevant material placed before us. So far as the addition of Rs. 57,24,140/- is concerned, we observe that the addition was made by the ld. Assessing Officer in the assessment framed under section 57(2)(vii)(b) of the Act as additional income. The ld. Assessing Officer has not discussed anything that on what account, this income has been added whereas during the course of hearing, the ld. A.R. pointed out that there is no such section in the Statute Book applicable and if at all the income was to be added it had to done under section 56(2)(vii)(b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... redit or source of money or asset to back such disclosure. Under these circumstances, 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 Rs. 84,40,690/-. 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 of Rs. 57,24,140/- out of the suo motu disclosure of Rs. 84,40,690/-. Ground No. 1 is allowed. 6. In so far as the second issue of confirmation of the addition of Rs. 58,61,170/- is concerned, we have already narrated the facts in the foregoing paras. As we have discussed above that disclosure is made by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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