Case Law Details
Raj Kumar Vs ITO (ITAT Amritsar)
ITAT Amritsar held that addition under section 68 of the Income Tax Act is beyond jurisdiction as the amount is already declared as turnover and the said turnover is reflected in the books of account.
Facts- AO completed the assessment of the assessee u/s. 143(3) making addition of Rs 2,74,000,00/- out of total cash deposited during demonetization period at Rs 4,09,50,000/-.The addition has been made by AO alleging that the appellant had inflated the sales to cover unaccounted money and assessed the total income at Rs. 2,82,17,200/-. As per assessee the amount deposited in bank on account out of his turnover which was declared in the P & L a/c during filing of the return. So, the same amount will be doubled tax. Aggrieved assessee filed an appeal before CIT(A). CIT(A) passed an order in ex parte and upheld the decision of AO. Being aggrieved assessee filed an appeal before us.
Conclusion- Held that AO has no right to calculate sales on hypothetical basis ignoring the evidence submitted during the course of assessment proceedings in the form of VAT return, purchase bills and quantitative details.
Once the amount is declared as turn over cannot be called concealed income and be taxed doubly on same amount. The addition U/s 68 is beyond jurisdiction of the ld. AO as the turnover is already reflected in the books of the assessee. So, the addition amount of Rs 2,74,00,000/-is quashed.
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