Dipaliben M. Shah Vs DCIT (ITAT Ahmedabad)
ITAT Ahmedabad: Section 153A Additions Sustained Where Incriminating Material Exists; Relief Granted for Amounts Already Offered Before Settlement Commission
The Ahmedabad Bench of the ITAT disposed of a batch of four appeals filed by the assessee for AYs 2009-10, 2010-11, 2012-13 and 2015-16. Appeals relating to AYs 2012-13 and 2015-16 were dismissed as not pressed.
For AY 2009-10, the Tribunal held that additions under section 153A could be sustained where incriminating material existed, following the coordinate bench decision in ACIT v. Benefit Tradelink Pvt. Ltd. However, additions relating to alleged unaccounted student fees were deleted since the same receipts had already been offered to tax before the Settlement Commission, and section 56(2)(vi) was held inapplicable. The addition towards unexplained investment in property was restricted on a proportionate basis, granting partial relief.
For AY 2010-11, additions relating to property purchases and residential unit investments were deleted where the amounts had already been disclosed before the Settlement Commission. Certain small additions towards unsecured loans and investments were accepted by the assessee and taxed accordingly, while an addition on account of unaccounted business profit was confirmed as a computation error.
Overall, the ITAT partly allowed the appeals for AYs 2009-10 and 2010-11, dismissed the remaining appeals, and clarified that income already offered before the Settlement Commission cannot be taxed again in section 153A proceedings
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
