INCOME TAX ACT, 1961

Section 69A

Income from undisclosed sources - Addition under section 69A - Cash found during search already offered and taxed in search assessment for preceding year -

AO pursuant to search conducted at assessee's premsies framed assessment under section 153A for assessment year 2010-11 and made addition of Rs. 2 crores on account of unexplained cash found during search. Assessee's case was that said amount of Rs. 2 crores was admitted by assessee for assessment year 2009-10,and hence, taxing the same amount in assessment year 2010-11 would amount to double taxation. Held: Cash seized, i.e., Rs. 2 crores during search proceedings closely corresponded to total income of Rs. 2 crores declared by assessee for assessment year 2009-10. In other words, assessee had already declared entire cash seized as income for Asst. year 2009-10. AO had not brought out any evidence on record to show that some other activity had been carried out during assessment year 2010-11, which resulted in cash seizure of Rs. 2 crores . Accordingly, AO was is clearly taxing the income twice, i.e., for assessment years 2009-10 and 2010-11, leading to double addition which was against the cannons of law. Accordingly, addition under section 69A was deleted.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

INCOME TAX ACT, 1961

Section 40A(3)

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