2016 (7) TMI 828 - AT - Income Tax

Addition on unexplained money received by the appellant u/s 69A - Held that - When the sale deed was executed in the present year, it is not acceptable that the balance amount was received by the assessee in the assessment year 2006-07, particularly when no cogent evidence in respect of his claim was produced before us or before any of the authorities below. Therefore, we hold that the amount of ₹ 34,37,500/- should also be taxed in the present year in addition to the addition upheld by the ld.CIT(A) of ₹ 8.75 Lakhs. In this manner, we uphold an addition of ₹ 43,12,500/- out of the addition made by the AO of ₹ 77.50 Lakhs. The remaining amount of ₹ 34,37,500/- is already offered to tax by the assessee in the present year. Therefore, to this extent, no further addition can be made and hence, this much addition is being deleted out of the total addition made by the AO of ₹ 77.50 Lakhs and partly deleted by the ld. CIT(A). We would also like to observe that if the assessee has disclosed income in the assessment year 2006-07 of ₹ 34,37,500/- which is being taxed in the present year and if the assessee can establish that both are same, then such income should not be taxed in the assessment year 2006-07 and if the tax has been paid by the assessee in that year, credit for the same be allowed in the present year against the addition being upheld by us of ₹ 34,37,500/- from the date of payment of tax for the assessment year 2006-07. - Decided partly in favour of revenue

Summary

Issues:
Cross appeals by assessee and revenue against CIT(A) orders for assessment year 2004-05.

Assessee's Grounds:
- Assessee challenges CIT(A)'s addition of ?8,75,000 out of original ?77,50,000 unexplained money received under section 69A.
- Denies liability for interest under sections 234-A, 234-B, and 234-C.
- Seeks appeal allowance, justice, costs, and refund of institution fees.

Revenue's Grounds:
- CIT(A)'s order deemed contrary to law, facts, and unsustainable.
- CIT(A) erred in not considering cash payments totaling ?1,15,87,500 while granting relief of ?68,75,000.
- Contention that CIT(A) should have sustained addition of ?38,37,500.

Facts and Assessment:
- Unexplained money of ?77,50,000 brought to tax under section 69A.
- AO sought details post-set aside of assessment order.
- Assessee offered ?68,75,000 for tax, disputed remaining amount.
- CIT(A) partially sustained addition of ?8,75,000, deleted balance.
- Dispute over total amount received and offered for tax.
- Assessee's partner firm also involved in transactions.
- Tribunal considered seized papers, remand report, and submissions.
- Tribunal upheld addition of ?43,12,500, deleted ?34,37,500 already offered.
- Direction for possible tax credit if income established as same in subsequent year.

Judgment:
- Assessee's appeal dismissed, revenue's appeal partly allowed.
- Tribunal's decision based on total cash received and tax offered.
- Observations made regarding potential tax credit for income overlap in subsequent year.