The Tax Publishers2021 TaxPub(DT) 0922 (Karn-HC)

INCOME TAX ACT, 1961

Section 69B

In view of the law laid down in case of J.K. Industries Limited and Another v. Union of India and Others [(2007) 13 SCC 673], the assessee is entitled to take a plea with regard to the matching principle and hence telescoping of expenses to be allowed against income declared.

Income from undisclosed sources - Addition under section 69B - Telescoping of expenses against income declared -

Assessee filed appeal against the order of Tribunal wherein it was held that telescoping of expenses cannot be allowed against income declared when the AO had granted such a relief and the revenue was not in appeal. Held: In view of the law laid down in case of J.K. Industries Limited and Another v. Union of India and Others [(2007) 13 SCC 673], the assessee is entitled to take a plea with regard to the matching principle and since the assessee has not been heard on the aforesaid issue, it was appropriate to quash the order passed by the Tribunal in so far as it pertains to the appeal preferred by the revenue and remit the matter to the Tribunal to decide the same afresh after affording an opportunity to all the parties on the aforesaid issue.

Followed:J.K. Industries Limited and Another Vs. Union of India and Others [(2007) 13 SCC 673].

REFERRED :

FAVOUR : Matter remanded

A.Y. : 2008-09



IN THE KARNATAKA HIGH COURT

SUBSCRIBE TaxPublishers.inSUBSCRIBE FOR FULL CONTENT