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TMI Blog2024 (11) TMI 166X X X X Extracts X X X X X X X X Extracts X X X X ..... ceeds to tax the assessee for the second time on the same transaction which had already suffered tax before the Hon ble ITSC. This illegal action of the ld AO is upheld by the ld CIT(A). Hence we have no hesitation to conclude that both the orders of the lower authorities are perverse and the revenue does not deserve another chance in these appeals. Hence we hereby delete the additions made by the ld AO towards undisclosed investment in committees for both the Asst Years 2007-08 and 2008-09 and accordingly the Ground raised by the assessee are allowed. - Shri M. Balaganesh, Accountant Member And Shri Sudhir Kumar, Judicial Member For the Assessee : Shri Ved Jain, Adv., Ms. Uma Upadhayay, CA For the Revenue : Ms. Jaya Chaudhary, CIT DR ORD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee, being part of that group was also roped in within the scope and ambit of provisions of section 153A of the Act. During the course of search, a diary was found at the residential premises of the assessee marked as Annexure -1 which contain certain transactions in respect of investment made in various committees. Consequent to the search, assessee along with his partner Mr Sawarmal Goyal filed application for Settlement before the Hon ble Income Tax Settlement Commission (ITSC in short) on 28.12.2011, wherein both the partners offered the opening balance of Rs 1,07,61,930/- shown in their respective capital accounts as on 1.4.2009. The copy of the Trial Balance for the period 1.4.2009 to 8.1.2010 duly reflecting the opening balance of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r had reproduced the observations of Hon ble ITSC as under:- 40. In his report dated 26.4.2013 (forwarded vide CIT s letter dated 28.04.2013), the AO has referred to page 137 of a Note book marked as Annexure A-1 as per which amounts of Rs 5,00,000/- each stood invested by the applicant on 01.01.2007 and 16.12.2007 but, however, this aggregate amount of Rs 10,00,000/- is shown as investment on 01.04.2009. Based on these inputs, the AO proposed treatment of Rs 10,00,000/- in the applicant s hands for AY 2010-11. 41. The applicant s reaction on the afore-mentioned investment is on the same lines as in the case of investment in property at Rohini, Delhi (para 38). In other words, here again, the applicant has conceded this as undisclosed inves ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A-1 on which tax has already been paid as directed by the Settlement Commission. If that is so, then no separate addition should be made. Assessee should be called upon to explain the same. Thus, the appeal of the assessee is partly allowed. 7. Similar observations were made by the Tribunal in the first round of proceedings for Asst Year 2008-09 also in ITA No. 517/Del/2014 dated 8.5.2018 in para 14 of its order. 8. Consequently, the ld AO issued notice u/s 142(1) r.w.s 254 of the Act requiring assessee to furnish documents in support of its claim in the second round of proceedings. The assessee filed reply dated 29.5.2019 furnishing the following documents:- a) Copy of Trial Balance from 01.04.2009 to 08.01.2010 submitted before the Hon b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d particulars of his income, penalty proceedings u/s 271(1)(c ) of the Act are being initiated separately on the issue of undisclosed investment in committees. Accordingly, income is determined as under:- Returned income Rs 3,65,580/- Income assessed u/s 153A r.w.s. 143(3) Rs 35,56,300/- Income determined u/s 250/153A/143(3) Rs 64,15,450/- Income assessed u/s 254/153A/143(3) Rs 64,15,450/- 10. This action of the ld AO is upheld by the ld CIT(A) in the second round. Aggrieved, the assessee is in appeals before us. 11. The aforesaid action clearly establishes that the ld AO and ld CIT(A) have completely ignored the binding directions of this Tribunal in the first round of proceedings. The Tribunal had in the first round given specific directi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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