Investments in FY 2013-15 linked to AY 2014-16, no s. 69A addition for AY 2016-17; prior cash deposit not re-added
The ITAT Mumbai held that investments made in FY 2013-14 and 2014-15 pertain to AY 2014-15 and AY 2015-16, thus no addition under s. 69A is warranted for AY 2016-17. Additionally, a cash deposit of Rs. 1.04 crores already added in AY 2014-15 cannot be re-added in AY 2016-17. Consequently, the AO's additions for AY 2016-17 were deleted, and the assessee's appeal was allowed.
ISSUES:
Whether addition under Section 69A of the Income Tax Act for investment amount made in earlier assessment years can be sustained in the assessment year under consideration.Whether addition of alleged cash investment already assessed in an earlier assessment year can be made again in the assessment year under consideration.
RULINGS / HOLDINGS:
The addition of Rs. 1,10,50,000/- under Section 69A relating to investments made in FY 2013-14 and 2014-15 (pertaining to AY 2014-15 and AY 2015-16) cannot be sustained in AY 2016-17, as "there is no question of making the addition in the Assessment Year under consideration." The addition is directed to be deleted for AY 2016-17.The addition of Rs. 1.04 Crores alleged as cash deposited in the scheme and already added in AY 2014-15 cannot be made again in AY 2016-17. The AO is directed to delete this addition as well.
RATIONALE:
The Court applied the principle that additions under Section 69A must correspond to the assessment year in which the investment or cash deposit was made, and cannot be carried forward or re-assessed in subsequent years once assessed.The decision relies on the factual matrix showing the dates and amounts of investment, establishing that the amounts were invested in earlier years relevant to AY 2014-15 and AY 2015-16, and the cash addition was already made in AY 2014-15 assessment order.No unique interpretation or doctrinal shift was noted; the Court emphasized adherence to limitation and avoidance of double addition for the same investment in different assessment years.
TaxTMI 
of 
Join Channel
TaxTMI 
