2011 (11) TMI 746 - AT - Income Tax

Summary

Issues involved:
The appeal challenges the order of the learned CIT(A) regarding the addition of Rs. 19,00,000 on account of FDRs owned by Shri Suresh Gupta, the settlement application of Shri Suresh Gupta, and the evidence related to the investment of Rs. 19,00,000.

Addition of Rs. 19,00,000 on account of FDRs:
- A search u/s 132(1) was conducted leading to the assessment of undisclosed income.
- The CIT(A) deleted the Rs. 19,00,000 addition, but the ITAT directed the matter back to the AO for further investigation.
- The AO reiterated the addition as the assessee failed to submit the final order of the Settlement Commission.
- The CIT(A upheld the AO's findings due to non-submission of the required document.
- The ITAT reiterated its previous directions, emphasizing the need for the final order of the Settlement Commission.
- As the Settlement Commission had not issued the final order, the ITAT vacated the CIT(A)'s findings and reiterated the directions from the previous order.

Settlement application of Shri Suresh Gupta:
- The appellant contended that the proceedings before the Assessing Officer were subject to the final order of the Settlement Commission in Shri Suresh Gupta's case.
- The ITAT emphasized the importance of the Settlement Commission's final order in determining the tax liability related to the FDRs.

Evidence related to the investment of Rs. 19,00,000:
- The CIT(A) was criticized for sustaining the addition without adjudicating on the evidence presented.
- The ITAT stressed the significance of the evidence and the need for compliance with their directions regarding the Settlement Commission's final order.

Separate Judgement:
No separate judgment was delivered by the judges in this case.