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TMI Blog2019 (9) TMI 1720X X X X Extracts X X X X X X X X Extracts X X X X ..... ver up all issues arising on account of stock, cash in hand, various omissions, commissions, assets, jewellery valuable, documents and on any instances where the search party is not satisfied on the explanations and clarifications given by us on any issues may be on account of large number of whole-sellers, agents, distributors, sub-agents, retailers in their own capacity and enormous volume of transactions, etc. Moreover, it was made it clear before the investigating authorities that the above admission of additional income was declared in good faith with a spirit of cooperation with the department and to buy peace of mind with the clear understanding that no penalty shall also be imposed and no prosecution proceedings will be initiated ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce addition towards variation in additional income admitted - assessee has not advanced any argument or the assessee has furnished any material evidence on record. When the assessee was asked to explain with regard to the short fall in income that was admitted under section 132(4) of the Act being ₹.80,53,26,740/-, before the ld. CIT(A), the assessee has explained about service tax refund of ₹.77.80 crores only and no reply was given on the difference amount of ₹.80,53,26,740- ₹.77,80,00,000. Accordingly, the balance addition of ₹.2,73,26,740/- stands confirmed. Appeal filed by the assessee is partly allowed. - Shri Inturi Rama Rao, Accountant Member And Shri Duvvuru RL Reddy, Judicial Member For ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee carried the matter in appeal before the ld. CIT(A) challenging the additions/ disallowances on account of variation in additional income admitted, unexplained expenditure, disallowance under section 14A of the Act as well as unexplained cash. After considering the facts of the case as well as submissions of the assessee, the ld. CIT(A) partly allowed the appeal filed by the assessee. 3. On being aggrieved, the assessee is in appeal before the Tribunal. With regard to the addition towards variation in additional income admitted, the ld. Counsel for the assessee has vehemently argued that as per letter dated 09.01.2015, the assessee has submitted before the Department that the additional income of ₹.203 crores will cover up all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficit of ₹.80,53,26,740/- in the income admitted in the return filed with reference to the income admitted at the time of search operation under section 132(4) of the Act. After considering the submissions of the assessee, the Assessing Officer observed that since, the day on which the additional income of ₹.203 crores was admitted on 09-01-2015, the assessee has brought nothing on record regarding the existence of the decision of the Hon'ble Supreme Court and its presumption or expectation on receipt of the refund during the year under consideration. The said order of the Hon'ble Court was delivered on 24.10.2013. As such, the fact of the Service Tax Refund of ₹.77.80 Crores was very much known to the assessee eve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The Director of the assessee company voluntarily admitted additional income of ₹.203 crores, that would cover up all issues arising on account of stock, cash in hand, various omissions, commissions, assets, jewellery valuable, documents and on any instances where the search party is not satisfied on the explanations and clarifications given by us on any issues may be on account of large number of whole-sellers, agents, distributors, sub-agents, retailers in their own capacity and enormous volume of transactions, etc. Moreover, it was made it clear before the investigating authorities that the above admission of additional income was declared in good faith with a spirit of cooperation with the department and to buy peace of mind with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arrant taxation of the benefit obtained, whether in cash or in any other manner whatsoever or accrued. By virtue of the judgement of the Hon ble Supreme Court delivered on 24.10.2013 towards service tax refund, the Assessing Officer cannot held that the benefit of service tax refund accrues to the assessee in the assessment year 2015-16 automatically. Moreover, the assessee also filed an undertaking before the Assessing Officer by way of an affidavit that the actual receipt of the service tax refund will be offered to tax, we are of the considered opinion that the Assessing Officer was not factually and legally correct to bring the same to tax in the assessment year in which the assessee has not actually received the refund or accrued. Unde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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