The Tax Publishers2020 TaxPub(DT) 5512 (All-Trib)

INCOME TAX ACT, 1961

Section 153A

Where additions were made by AO by considering the deposits only made during the year without taking into account the corresponding withdrawals by assessee, thus, it was pleaded that addition, if any, can be made only for the peak credit in the bank account of the assessee and since this issue of considering the withdrawals requires verification of record and therefore, matters for all these six years were remanded to AO for re-adjudication of the issue of addition on merits.

Search and seizure - Assessment under section 153A - Addition for unexplained deposits - Necessity of incriminating material during the course of search

There was a search and seizure action under section 132 at the residential and business premises of the assessee. Consequently, AO initiated the proceedings under section 153A for six years and passed the assessment order for these six years, whereby AO had made the additions on account of unexplained deposits in the bank account of the assessee under section 69. AO had made the solitary addition on account of unexplained deposits in the bank account. Held: AO made the addition for these six years on account of unexplained deposits in bank account of the assessee. As assessee had contended that additions were made by AO by considering the deposits only made during the year without taking into account the corresponding withdrawals by assessee. Thus, it was pleaded that addition, if any, can be made only for the peak credit in the bank account of assessee. Since this issue of considering the withdrawals required verification of record and therefore, matters for all these six years were remanded to AO for re-adjudication of the issue of addition on merits after considering the explanation of assessee including withdrawals made by assessee from the bank account.

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2008-09 to 2013-14



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