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ITAT upheld the addition to assessee’s taxable income
ITAT upheld the addition to assessee’s taxable income
A search u/s 132 (of Income Tax Act, 1961) was carried out in Sejal Mahindra group of cases. AO issued notice u/s 153A (of Income Tax Act, 1961) requiring assessee to file return. She offered income of Rs.10.00 cores on the basis of peak level in the cash book and bank account. AO determined taxable income, and made addition. CIT(A) confirmed addition. ITAT upheld the addition.-500781
1. A search and seizure action u/s 132 (of Income Tax Act, 1961) was carried out in Sejal Mahindra group of cases.
2. AO issued notice u/s 153A (of Income Tax Act, 1961) requiring assessee to file return of income within 30 days.
3. She offered income of Rs.10.00 cores on the basis of peak level in the cash book seized by the department and from the bank account maintained by the assessee, and other family members and concerns.
4. AO determined the taxable income of the assessee Rs.6,04,29,234.
5. AO made addition of Rs.27,75,000.
6. Assessee challened the assessment contending that it was time barred.
7. CIT(A) confirmed the addition of Rs.27,75,000.
On appeal, the ITAT held as under:
8. Therefore, following our order in the Asstt.Years 2002-03 to 2004-05, we do not find any merit in the ground nos.1 and 2. They are rejected.
9. The total investment made by the assessee was of Rs.40 lakhs, a sum of Rs.12.25 lacs was invested in accounting period for Asstt.Year 2004-05 and it was added in that year.
10. The balance paid in Asstt.Year 2005-06, therefore, the addition of Rs.27.75 lakhs has been made in this year.
11. On the basis of our finding in Asstt.Year 2004-05, it is to be confirmed in this year also.
Case Reference - Sejal Gopalbhai Shah Vs CIT.
IN THE INCOME TAX APPELLATE TRIBUNAL "C" BENCH, AHMEDABAD
BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND
SHRI MANISH BORAD, ACCOUNTANT MEMBER
IT(SS)A No.386/Ahd/2011
( Asstt. Year: 2005-06)
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