Narayan Rao Hebri Vs ACIT (Karnataka High Court)
Karnataka High Court held that taxpayer cannot be permitted to retract voluntary disclosed income admitted in return of income filed nearly 14 months after the survey without giving evidence of coercion. Accordingly, appeal of assessee stands dismissed.
Facts- The assessee is engaged in the business of real estate. The return of income was selected for scrutiny to verify the payment of tax in cash during the demonetization period. The assessment order records that a survey u/s. 133A of the I.T. Act was conducted on 27.09.2016 and that, pursuant thereto, the assessee, by letter dated 29.09.2016, volunteered to offer a sum of Rs.1,14,20,100/- as additional income. The notice u/s. 143(2) of the I.T. Act relates to a cash payment of Rs.24,00,000/- made by the assessee.
In addition to the income declared by the assessee, AO made an addition towards long-term capital gains and treated the sum of Rs.1,14,20,100/-, so declared, along with the unexplained cash of Rs.24,00,000/-, as income from other sources and subjected the same to tax u/s. 115BBE of the I.T. Act. The assessment was completed by order dated 17.07.2019.
Tribunal held that since the said income was voluntarily offered by the assessee and the return of income was filed after the survey admitting such income, the assessee was not entitled to seek exclusion of the admitted income. The Tribunal also observed that the return of income had been selected for scrutiny only with reference to the addition of Rs.24,00,000/-. However, insofar as the addition of Rs.24,00,000/- was concerned, the Tribunal accepted the contention of the assessee and deleted the said addition.
