|The Tax Publishers2020 TaxPub(DT) 5098 (Visakhapatnam-Trib)
INCOME TAX ACT, 1961
When there was evidence available with regard to actual unaccounted expenditure and receipts, taxing the entire unaccounted receipts as income was unjustified.
Survey - Loose sheets found - Addition of entire unaccounted receipts vis-Ã -vis actual undisclosed receipts -
In the instant case, survey under section 133A was conducted and during the course of survey, loose sheets were found disclosing the unaccounted receipts which were received in cash as well as cheque. Cash receipts worked out to Rs. 7,93,95,000 as discussed in the assessment order. The assessee had admitted the entire undisclosed receipts as income for various assessment years, however, offered only 30% of the undisclosed receipts as income in the return filed in response to notice issued under section 148 of the Act. The CIT(A) accepted the income admitted by the assessee as justified in his order. Held: When there was evidence available with regard to unaccounted expenditure and receipts, taxing the entire unaccounted receipts as income was unjustified. Hence, estimation of income made by assessee which was accepted by CIT(A) appeared to be reasonable.
FAVOUR : In assessee's favour
A.Y. : 2015-16 and 2016-17.
IN THE ITAT, VISAKHAPATNAM BENCH
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