Beachwood Properties Pvt. Ltd. Vs DCIT (ITAT Mumbai)
ITAT Mumbai held that once the source of cash is taxed, it cannot be further taxed as unexplained cash expenditure. Hence, addition under section 69C of the Income Tax Act for cash payments deleted.
Facts- The common issue involved in the present appeal is in respect of addition made u/s.69C for expenditure incurred in cash based on certain entries appearing in loose paper, rough diaries, sheets, etc., referred to as seized material found during the course of search at the premises of one of the group company of the assessee. Assessee in the present case is “other person” as referred to in section 153C and the impugned assessments have been completed by passing orders u/s. 153C r.w.s. 143(3) of the Income Tax Act.
Conclusion- The notings of undisclosed expenditure had been fully explained by furnishing the cash flow statement which has been accepted by the ld. lBS. Thus, we note that cash receipt was offered to tax and out of that cash receipt, cash expenditure was noted. Addition of such cash expenditure in the hands of the assessee would tantamount to double taxation, firstly as cash income in the hands of Mr. Vikas Oberoi in the settlement proceedings and again in the hands of the assessee as cash expenditure. We are of considered view that, once the source of cash is taxed, it cannot be further taxed as unexplained cash expenditure. Accordingly, we delete the addition made in the hands of the assessee u/s. 69C for cash payments, treated by the ld. Assessing officer as unexplained expenditure.
