Case Law Details
Rajesh Gupta Vs ITO (ITAT Delhi)
The issue under consideration is that whether A.O. is correct in taxing the same turnover in the hands of two assessees?
In the given case, the assessment of an assessee has been re-opened on the ground that the Investigation Wing received a tax evasion petitions stating that the assessee being a proprietor of M/s. Satyam Builders has undisclosed income on account of booking of bogus expenses by the bogus bills. There is a allegation of booking of bogus expenses in case of proprietorship namely stayam builders of assessee and other partnership firm namely M/s. Satyam Builders. The A.O. is directed to give the benefit to the turnover in the partnership firm as well as the proprietary concern.
ITAT state that the issue where one turnover can be taxed in the hands of two different assessee one being partnership firm M/s. Satyam Builders and another being proprietary concern of the assessee namely satyam Builders. The answer is emphatically No. Therefore, the ld AO is directed to delete the addition in the hands of the assessee to the extent of the turnover considered in case of Ms/. Satyam Builder a partnership firm.
FULL TEXT OF THE ITAT JUDGEMENT
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