Pradeep Tyagi HUF Vs ITO (ITAT Delhi)
ITAT Delhi held that applicability of section 115BBE of the Income Tax Act without initially fixing the addition under any of the charging provisions i.e. section 68, 69, 69A, 69B, 69C and 69D of the Income Tax Act is not tenable in the eye of law. Accordingly, appeal allowed.
Facts- Assessee has preferred the present appeal. The only issue arising in this case is regarding addition of Rs. 1,00,00,000/- made by the AO as income earned from unexplained sources, chargeable to tax under section 115BBE of the Income Tax Act.
Conclusion- It is crystal clear that before application of this provision, the income must fall within the parameter of the sections so specified. However, in this case, the Assessing Officer has failed to pin point any such charging section under which the proposed addition was made. Section 155BBE falls within the chapter-XII of the Income Tax Act, 1961 and is basically concerned with determination of tax in special cases. The Assessing Officer has fallen into palpable error in jumping to section 115BBE without initially fixing the addition under any of the charging provision.
Held that the order of the ld. CIT(A) is mainly reiterating the order of the Assessing Officer and he has glossed over the fact that in absence of charging provision is fatal to the finality of the assessment order. Accordingly, the entire addition of Rs.1 Crore is directed to be deleted. Since, we have deleted the addition in entirety, we need not answer about the applicability of section 115BBE of the Act at this juncture. Accordingly, the appeal of the assessee is allowed.
