INCOME TAX ACT, 1961

Section 69B

Income from undisclosed sources - Undisclosed investment - Certain expenditure not related to year under consideration -

Assessee was engaged in Hotel and Restaurant business. A survey under section 133A(1) was conducted at the business premises of the assessee and during the course of survey the assessee had offered to tax an amount as its undisclosed income for the assessment year 2009-2010 subject to no penal action. Assessee also admitted the undisclosed investment in the hotel. Thereafter, AO issued statutory notices to assessee. Finally, the AO framed the assessment assessing total income and made addition under section 69B. Held: From the paper obtained during the course of survey proceedings, it was clear that some of the expenditure which were not related to assessment year and this objection was also taken before CIT(A) who had not properly dealt this matter while deciding the appeal of the assessee. This matter should go back to AO for further verification regarding the addition made on the hotel building. AO was also directed to give telescoping from the surrendered if assessee had paid taxes on the entire surrendered amount. If it is found otherwise, then AO was directed to consider the amount on which the assessee has paid taxes thereon. AO was also directed to grant depreciation if assessee was eligible as per Act on the hotel building and if depreciation was not claimed while calculating the taxable income of assessee.

REFERRED :

FAVOUR : Matter remanded

A.Y. : 2009-10

APPELLATE TRIBUNAL RULES, 1963

Rule 34

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