Brijesh Kumar Vs ITO (ITAT Delhi)
ITAT Delhi held that protective addition in the hands of assessee deleted as substantial addition already made in the hands of the assessee’s wife and tax is already paid on the same. Accordingly, addition deleted.
Facts- The case of the Assessee was selected for scrutiny under CASS, accordingly notice u/s 143(2) and 143(1) along with questionnaires were issued to the Assessee. Assessment order came to be passed on 04/11/2016 by making addition of Rs. 86,20,000/- u/s 69 of the Act of Income Tax Act, 1961 as unexplained investment.
CIT(A) sustained the addition of Rs. 20,50,000/- which was claimed to have been invested from capital of the Assessee and Rs. 12,00,000/- claimed to have invested by Sh. Munesh Devi wife of the Assessee and deleted the rest of the additions by restricting the addition to Rs. 32,50,000/-.
Being aggrieved, the present appeal is filed.
Conclusion- Held that there is every chance of accumulation of cash from the earlier years, therefore, Assessee having availability of cash in hand which can be corroborated with capital account and statement of affairs for three years. Thus, addition of Rs.20,50,000/- made under section 69 of the Act deleted.
Held that as the substantial addition made in the hand of the Assessee’s wife has been claimed to have been accepted and due tax has been paid, the protective addition made in the hand of the Assessee does not survive. Accordingly, the protective addition of Rs. 12,00,000/- made in the hand of the Assessee on protective basis is hereby deleted.
