|The Tax Publishers2020 TaxPub(DT) 5126 (Pune-Trib)
INCOME TAX ACT, 1961
Where assessee offered certain amount as 'Miscellaneous Receipt', which had been duly taxed, the AO was not justified in making addition of the said amount on utilization of the same by the assessee by means of deposit in the bank account.
Income from undisclosed sources - Addition under section 69A - Alleged unexplained cash deposits -
Assessee made certain deposits in his bank account, the details of which were not forthcoming. During course of assessment proceedings, the assessee submitted date-wise explanations about the cash deposits. AO accepted all other transactions except a sum of Rs. 3,00,000, for which no documentary evidence was available. Accordingly, he made addition of Rs. 3,00,000 under section 69A, which was further confirmed by CIT (A). Held: It was found that the assessee offered a sum of Rs. 3,00,000 as 'Miscellaneous Receipt' in her revised computation of income. Revenue made and confirmed the instant addition on the ground that the said receipt of Rs. 3,00,000 was different from the deposit of Rs. 3,00,000 in the bank account. Once the assessee offered a sum of Rs. 3,00,000 on receipt of the amount, there could have been no occasion of making another similar addition on spending/investing the said amount. If a person earns Rs. 100 from undisclosed sources and thereafter offers it for taxation, its later utilization, and that too, through undisclosed transactions, would not invite any further addition. AO cannot make one addition at the time of earning the undisclosed income and another similar addition at the time of spending the same. In instant case, the assessee offered Rs. 3,00,000 as 'Miscellaneous Receipt', which had been duly taxed and thus, further utilization of such amount of Rs. 3,00,000 by the assessee by means of deposit in the bank account, could not call for any addition and hence, the said addition was deleted.
FAVOUR : In assessee's favour
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