2016 (6) TMI 262 - SCH - Income Tax

Addition to undisclosed income as defined u/s 158B(b) - Held that - HC order confirmed 2014 (11) TMI 482 - DELHI HIGH COURT . As during investigation, statements of different persons referred to above, were recorded to ascertain and decipher whether the money deposited in the bank accounts had any connection or belonged to JMM or the said money was undisclosed income of the individual assessees. Assessment in the hands of JMM was on a protective basis. The Tribunal has not considered and examined the said evidence and has also not gone into the question whether and if in case no addition could be made in the hands of the individual assessee, substantive addition on the basis of the said evidence or material could be sustained in the hands of JMM. Of course, in case substantive addition in the hands of the individual assessee stands finally affirmed, the protective addition in the hands of the JMM would dissipate and would not be sustainable. As the appeals were allowed on the preliminary ground; there was no undisclosed income which could be made subject matter of block assessment and additions, if any, could be made only in the regular/normal assessment. Learned counsel for the Revenue accepts the said position. We also notice that the Tribunal has not gone into and examined the merits. Thus, an order of remand would be justified and is required as other issues on merits etc. have to be examined.

Summary

The Supreme Court dismissed the special leave petition as it found no merit in the case. Delay was condoned, and any pending application was disposed of. (Citation: 2016 (6) TMI 262 - SC Order)