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2015 (9) TMI 1118 - HC - Income TaxAddition made by the A.O. u/s 154 - this amount relates to the amount already declared under the Amnesty Scheme for the A.Y. 1976-77 and 1977-78 and consequently allowed the benefit of set off in the A.Y. 1984-85 - ITAT deleted the addition - Held that - It was recorded by the Tribunal that the assessee had declared an amount of ₹ 2,40,000/- for the assessment year 1976-77 and ₹ 3,50,000/- for the assessment year 1977-78 under the Amnesty Scheme. It was also noticed that addition of ₹ 3,56,500/- was not required to be separately made as the same could be taken to have been included in the amounts disclosed in earlier assessment years. The Tribunal further recorded that the addition of ₹ 55,000/- also fell within the permissible limit of declaration made by the assessee under the Amnesty Scheme for the assessment years 1976-77 and 1977-78. In such circumstances, we do not find any error in the approach of the Tribunal in upholding the deletion of ₹ 55,000/- in the current year. The finding recorded by the Tribunal was not shown to be erroneous or perverse in any manner which may warrant interference by this Court - Decided against revenue.
Issues:
Claimed substantial question of law: Deletion of addition under Section 154 of the Income Tax Act, 1961 relating to Amnesty Scheme for assessment years 1976-77 and 1977-78. Analysis: The appeal before the High Court revolved around the deletion of an addition of Rs. 55,000/- under Section 154 of the Income Tax Act, 1961, by the Income Tax Appellate Tribunal (ITAT). The revenue challenged this deletion, questioning whether the ITAT was correct in law to delete the said amount by allowing a set-off related to the Amnesty Scheme for the assessment years 1976-77 and 1977-78 in the assessment year 1984-85. The assessee, a commission agent dealing in foodgrains, had initially declared an income of Rs. 1,48,706/- for the relevant assessment year. The Assessing Officer made an addition of Rs. 3,56,000/- on account of peak cash in the books of account, which was later increased by Rs. 55,000/- under Section 154 due to a calculation mistake. The Commissioner of Income Tax (Appeals) subsequently deleted the addition, leading to the revenue's appeal before the ITAT. The ITAT upheld the deletion of the Rs. 55,000/- addition, considering that the assessee had disclosed significant amounts under the Amnesty Scheme for the assessment years 1976-77 and 1977-78. The Tribunal noted that the total disclosed amount under the scheme exceeded the sum of Rs. 3,56,500/- and the additional Rs. 55,000/-, indicating that the disputed amount was encompassed within the Amnesty Scheme declarations. The High Court reiterated the Tribunal's findings, emphasizing that the addition of Rs. 55,000/- fell within the permissible limit of the Amnesty Scheme declarations. The Court also highlighted a previous case where a similar challenge by the revenue was dismissed, further supporting the Tribunal's decision. Ultimately, the High Court found no error or perversity in the Tribunal's decision to delete the Rs. 55,000/- addition and uphold the CIT(A)'s order. The Court concluded that the substantial question of law raised by the revenue was answered against them, leading to the dismissal of the appeal. The judgment highlighted the consistency in the Tribunal's approach and the absence of grounds for interference, solidifying the decision in favor of the assessee and against the revenue's contentions.
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