2023 (1) TMI 1328 - HC - Income Tax

Block assessment order passed u/s 158 BC - declaring undisclosed income after making additions on account of undisclosed receipt - CIT(A) deleted the additions made on account of (i) gift from Arvinder Pal Singh; (ii) notional rental income (iii) credits in bank account (iv) prize money, bonus money, match fee and tour fee (v) investment in purchase of jewellery (vi) investment in the purchase of property and sustained additions made on account of household expenses - ITAT deleted addition on account of household expenses - HELD THAT - The deposit was in the name of HUF and the source of deposit was explained. The return in the name of HUF was furnished after receiving the notice from the department and the bank account belonged to HUF. The department had issued notice under Section 142 (1) of Act 1961 dated 02.04.2002 and the assessee filed return in the capacity of HUF. The Bank account was in the name of the HUF and not in the individual name of the assessee. The assessee explained the source of deposit in the HUF. Bonus Money was the prize money given by the Board and the said prize money was exempted from tax. It is also not in disputed that the issue with regard to match fee was covered by CBDT Circular No. 1432 dated 26.11.87 wherein guidelines for the treatment of tour money received by cricket player had been laid down by CBDT. It was withdrawn by circular dated 22.09.1998 but this could not have been applied retrospectively. Both these issued came up for consideration before CIT (A) Patiala during the course of assessment proceedings and the CIT (A) Patiala vide order dated 2.6.1999 had already adjudicated this issued in favour of the assessee. Further it has been noticed in the judgment that similar issue had been considered in the case of Dr. (Smt.) Navjot Kaur Sidhu w/o the assessee for the block period 01.04.1990 to 20.07.2000, vide order dated 30.08.2005 and keeping in view this fact, the appeal of the department was dismissed. No substantial question of law arises for consideration in the present appeal.

Summary

Issues:
1. Setting aside of order passed by Income Tax Appellate Tribunal for block period 01.04.1990 to 20.07.2000.
2. Additions made by Assessing Officer in block assessment.
3. Appeal before CIT (A)-I, Ludhiana and subsequent deletions and sustenance of additions.
4. Appeal before Income Tax Appellate Tribunal, Chandigarh Bench A, Chandigarh and deletion of addition on account of household expenses.
5. Source of deposit in HUF account and explanation provided.
6. Treatment of bonus money and match fee as per CBDT Circular.
7. Previous decisions by CIT (A) Patiala and similar cases considered.

Analysis:
The judgment concerns an appeal filed under Section 260 of the Income Tax Act, 1961, seeking to set aside an order passed by the Income Tax Appellate Tribunal for the block period 01.04.1990 to 20.07.2000. The case involved a search of the respondent's residential premises under Section 132(1) of the Act, leading to the discovery of undisclosed income. The Assessing Officer completed a block assessment, making various additions including undisclosed receipts, unexplained investments, and household expenses. Subsequent appeals before CIT (A)-I, Ludhiana resulted in partial allowance of the appeal, with certain additions being deleted but household expenses being sustained.

Further appeal was made before the Income Tax Appellate Tribunal, which partially allowed the appeal of the respondent by deleting an addition on account of household expenses. The judgment highlighted that the source of deposit in the HUF account was explained, and the treatment of bonus money and match fee was in line with CBDT Circulars. Previous decisions by CIT (A) Patiala favored the assessee, and the issue had attained finality. The judgment concluded that no substantial question of law arose for consideration, leading to the dismissal of the appeal.