1999 (5) TMI 620

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....ting the expenditure incurred by the assessee on the renovation of residential house as well as purchase of items of furniture and other articles along with the expenditure incurred on marriage of a member of HUF, were found. During the course of statement recorded under section 132(1), the assessee offered an unaccounted income of Rs. 21,30,000 which, according to the assessee, was earned by way of commission, etc., charged more than that was shown in accounts. Before the assessment order of 1990-91 was passed, the Assessing Officer issued notice for the assessment years 1988-89 and 1989-90. The assessee had filed return declaring income. However, the Assessing Officer was not satisfied, and he completed the assessment on 21-10-1992 for....

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....h and seizure operation in the case of the assessee, wherein additional income of Rs. 21,30,000 inclusive of renovation expenses of residential house amounting to Rs. 13,80,000 and unaccounted marriage expenses amounting to Rs. 1,50,000 was offered for assessment in the assessment year 1990-91. However, subsequently after the examination of seized material it was found that some of the renovation expenses related to the assessment year 1989-90 and particularly the unaccounted marriage expenses of Rs. 3,05,200 was incurred during the assessment year 1989-90 but only a sum of Rs. 1,50,000 was considered for assessment during the course of statement recorded under section 132(4). Thus, undisputedly the unaccounted marriage expenses to the exte....

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.... had initiated penalty proceedings. The department having taxed the entire amount of income of Rs. 21,30,000 in the assessment year 1990-91, could not subject the same income to tax in the assessment years 1988-89 and 1989-90. Accordingly, the departmental authorities were not justified in making/sustaining the addition on account of renovation expenses of the house because both these amounts were included in the amount of Rs. 13,80,000 surrendered by the assessee for renovation of house in the assessment year 1990-91 in its return of income and it already stood taxed in the assessment year 1990-91 vide order dated 31-3-1992. As regards the addition on account of unexplained marriage expenses on the marriage of 'N' was concerned, the ....