INCOME TAX ACT, 1961

Section 69

Income from undisclosed sources - Addition under section 69 - Excess cash found during survey - AO made addition again in set aside proceedings without considering submissions made by assessee before Tribunal

During the course of survey cash of Rs. 2,50,000 had been found which had been surrendered by the assessee. But while filing ITR for assessment year 2005-06, assessee did not include said amount as additional income on account of excess cash found. It was the second round of litigation. In earlier round, tribunal restored the matter to AO with directions to verify additional documentary evidence furnished by assessee and then to decide the matter afresh after giving due opportunity of being heard to assessee. However, AO during without considering submissions made by the assessee, again made additions which were made in original assessment.Held: Tribunal had categorically directed AO to make verifciation of claim of assessee but instead of making verification AO yet again made additions. Even CIT(A) did not call for any remand report from AO regading assessee\s submissions. Under these facts and circumstances, addition made by AO could not be sustained and were deleted.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2005-06

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