Telescoping Allowed; Cash Found Explained from Firm’s Surrendered Income

Rakesh Kumar Vohra Vs DCIT (ITAT Chandigarh) The ITAT, Chandigarh Bench held that telescoping benefit cannot be denied merely because firm’s disclosure is profit-estimated and not cash-flow specific, when the assessee is a substantial partner and the unaccounted income must manifest as cash or assets. In this case, cash of ₹5.50 lakh found during search was added u/s 69A in the hands of the assessee. The assessee explained that the cash belonged to the partnership firm, which had suo-moto disclosed substantial additional income during search proceedings. The lower authorities rejected tele...