2021 (2) TMI 755

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....n 260A of the Income Tax Act, 1961 (hereinafter referred to as the 'Act' for short) has been filed by the assessee against the order dated 05.09.2014 passed by the Income Tax Appellate Tribunal (hereinafter referred to as the 'Tribunal' for short). 2. The subject matter of the appeal pertains to Assessment Year 2008-09. The appeal was admitted by a Bench of this Court vide order dated 11.09.2015 on the following substantial questions of law. "1. Whether the Tribunal was correct in holding that telescoping of expenses of Rs. 30,00,000/- cannot be allowed against income declared of Rs. 50,00,000/- when the Assessing Officer had granted such a relief and the revenue was not in appeal? 2. Whether the Tribunal was correct in....

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....of Rs. 8,82,13,948/- was issued. A notice under Section 143(2) of the Act was issued to the assessee on 27.07.2010 inter alia made an addition of Rs. 50,000/- towards development expenses, Rs. 32,50,000/- towards unexplained investment and Rs. 30,00,000/- was made in excess of Rs. 20,000/-. Accordingly, the assessment was completed. 4. The assessee thereupon filed an appeal before the Commissioner of Income Tax (Appeals). The Commissioner of Income Tax (Appeals) by an order dated 15.09.2011 inter alia held that Rs. 50,00,000/- was the declaration of income made by the assessee which has to be confirmed. However, it was held that the Assessing Officer has given telescoping benefit to unexplained investment of Rs. 30,00,000/-. It was furth....

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....investment of Rs. 32.50 lakhs. The expenses for development had already been incurred, therefore, disallowance is not being made on account of inflated expenses claimed by the assessee. The addition was made on the ground that the assessee failed to explain the source of expenditure towards development. It suggests that the expenditure were incurred already but its source was not known. If that be so, then, how out of that amounts, further investments can be made. Therefore, the credit of alleged availability of the amount cannot be claimed for set off. The findings of the CIT(A) are set aside on this issue also and that of the Assessing Officer is restored." 5. Being aggrieved, the revenue as well as the assessee filed the appeals. In t....