Undisclosed income from one year can be used in subsequent years to justify investments or expense

ACIT Vs Naresh Jain (ITAT Jaipur)

In this ground, the Revenue contested the telescoping benefit of Rs. 1,00,30,778 that was granted by the CIT(A). Telescoping refers to the adjustment of income or unexplained investments of one year against the undisclosed income of another year. The CIT(A) had allowed the benefit of telescoping by utilizing the additional income disclosed by the assessee from earlier years to set off against the additions made in the current year.

The ITAT upheld the decision of the CIT(A), agreeing with the principle that the undisclosed income from one ye

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