Case Law Details
ACIT Vs. Shri Dulquer Salmann (ITAT Chennai)
ITAT Remit Back the case of Actor Dulquer Salmann (Assessee) back to Assessing Officer (AO) as Information reconciling source for investments which were added as undisclosed income were placed before it but not placed before AO.
In the present case, Income tax search was conducted on the residential premises of the assessee. Based on the search, assessment proceedings were conducted against the assessee where the Assessing Officer found that as the source for investments was not explained, therefore, the officer added it as undisclosed income of the assessee. Assessee appealed befoore CIT(A) and CIT(A) passed the order in favour of assessee. Hence now Revenue filed the appeal before ITAT against order of CIT(A).
ITAT noted that before the Settlement Commission, the assessee’s father and Mollywood actor Mammootty explained the nature of the transactions and all the investments made in the name of the actor have been reconciled with the bank statements of his father and that of the assessee. Further ITAT observed that the materials placed before them were not at all placed before the Assessing Officer. Therefore, the A.O. has not examined the nature and source of impugned transactions. In the absence of such details, the A.O made the additions based upon incremental difference between the balance sheet of earlier year and the current year.
Hence, ITAT states that since the nature and source of the impugned transactions were not properly placed and explained before the A.O, they deem it fit to remit the issues back to the file of A.O for a fresh examination.
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