AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 1499
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....elevant miscellaneous records took some time and once the records were traced out, immediately the appeal paper were made ready and appeal is being filed on 20.05.2025. After considering the affidavit filed by the revenue and also hearing both the parties, we find that there is a reasonable cause for the revenue in not filing appeal on or before the due date prescribed under the law and thus, in the interests of justice, we condone delay in filing of appeal and admit the appeal filed by the revenue for adjudication. 3. The brief facts of the case are that M/s.Sri Balaji Educational and Public Charitable Trust, is a Registered Public Charitable Trust engaged in providing education through the educational institutions run under its aegis in the streams of Medicine, Engineering, Arts, Science and Allied Disciplines. 4. An action u/s. 132 of the Act was undertaken in the case of the M/s.Sri Balaji Educational and Public Charitable Trust, on 24.06.2016 and the residential and office premises of the Chairman and Managing Trustee M.K.Rajagopalan (hereinafter referred to as 'assessee') was simultaneously covered in the said action. Based on the material gathered during the course of ....
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....tted income and can be telescoped against the disclosure it is also submitted that the amount advanced by me to certain parties in the year 2012-13 of Rs. 5.30 crores and Rs. 11 crores in the year 2015-16 are from and out of the above receipts as stated in the earlier para SI.No.1. 4 During the course of assessment proceedings, on verification of the return of income filed for the assessment year in question, it is noticed that the assessee has offered donation in the form of voluntary contribution at Rs 25,09,88,510/- as against undisclosed amount of Rs. 79,70,00,000/- admitted during the course of search and post search proceedings. In this regard, vide this office show cause notice dated 29- 8-2018, the assessee was asked to furnish explanation for not adhering to the admission made during the course of search proceedings. In response, the assessee has furnished a comparative chart depicting the income admitted before the Investigation wing & income admitted which is enclosed herewith as annexure-1. 5. On careful consideration of the said chart, it is noticed that as against total donations receipt of Rs. 55.01 crores, the assessee has admitted in the return of....
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....e was to be offered in the hands of the assessee, and while the nature and source of such quantum could not be established to that of the assessee and was firmly pivoted to be the income of the Trust in which the assessee is a Managing Trustee, the taxation of income got shifted to the Trust in respect of this disclosure of Rs. 325.00 crores. 14.2 This migration was firmed up in all the assessment years except for the year under consideration, as the order to be passed determining the income in the hands of the Trust u/s. 245D of the Act by the Settlement Commission had attained finality. But for the year under consideration, since it was a regular assessment, the shortfall in disclosure made was assessed on a substantive basis in the hands of the Trust and on a protective basis in the hands of the assessee. 14.3 On the merits of the addition made in the hands of the Trust, which was also contested in both the appeals for A.Y.2017-18, the AO found that the component of income agreed to be offered for A.Y.2017-18 out of the total quantum of Rs. 325.00 crores was Rs. 79.70 crores and while the income disclosed in the hands of the Trust for A.Y.2017-18 was only Rs. 25.09 crores,....
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....y me in the above paragraph as additional undisclosed income to be taxed in the hands of the appellant for AY 2017-18. Thus, the entire amount of Rs. 300.74 crores arising out of the incriminating material seized during the course of search has already been brought to tax and there is no material evidence available with the AO to bring to tax the additional sum of Rs. 24.26 crores over and above the incriminating material seized in the course of search. It is also noted that the appellant had originally admitted the additional sum of Rs. 24.26 crores in the statements recorded and letter filed on 26.08.2016 only to keep up the initial disclosure of Rs. 325 crores. It is a well-settled law that no addition can be made merely based on the statement recorded u/s 132(4) of the Act without any corroborative materials. Hence, I am of the opinion that the addition made by the AO of Rs. 24.26 crores on account of additional buffer income admitted by the appellant is without any material evidence and the same cannot be sustained. 15. Addition on account of cash deposited 15.1 During F.Y. 2016-17 the assessee had deposited cash of Rs. 32.00 crores and the same was deposited after the d....
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....of search, is taxed in the hands of the Trust as per order u/s 245D(4) dated 14.06.2023 and the additional income admitted by the appellant in the return of income filed for AY 2016-17 is not telescoped against income of the Trust. On these facts and circumstances, it is seen that the appellant had already offered the additional income of Rs. 47,05,00,000/- to tax in AY 2016-17 and paid the taxes thereon, which is to be allowed as source for cash in hand as on 31.03.2016 of Rs. 43:47 crores and the same is to be allowed as source for the cash deposited during the FY 2016-17 by the appellant. In other words, it can be stated that the income admitted by the appellant in the AY 2016-17 is to be telescoped with the cash deposited in the subsequent year, i.e., AY 2017-18. Further, it is also noted that the appellant had not only offered Rs. 47.05 crores in the AY 2016-17, he had also offered an additional income of Rs. 23.71 crores pertaining to AY 2013-14 to 2015-16 in the return of income filed u/s 153A and also settlement application filed after the date of search without any incriminating material and not claimed any application of income other than the cash deposited in his bank ac....
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....agopal 1. 2013-14 Additional Income offered as per Final Order dt. 13.03.2017 u/s. 245D(4) of the Act by ITSC, Chennai. 13,87,12,778 2. 2014-15 6,42,45,569 3. 2015-16 12,98,65,498 4. 2016-17 55,13,19,650 Total 88,41,43,495 20. According to the AR, while the AO had not established that the cash generated as a result of such disclosure was utilised elsewhere and not deposited in the bank account of the assessee, the natural corollary is that the income offered to tax in the earlier years is available to explain the source of cash deposited in the subsequent year as the benefit of telescoping is automatic. 21. Telescoping means identifying an income and its application, so that ultimately tax is levied either only on the income or on its application. In other words, in case where an assessee has certain undisclosed income and also certain undisclosed investments, then it could be presumed that the undisclosed investments have been sourced out of the undisclosed income, so that only the income may be taxed or only the investment may be taxed and not both, in the hands of the assessee un....
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.... orders u/s. 245D(4) of the Act were passed in both the cases and substantial portion of the income disclosed as search were covered in the said settlement. However, further we find that the assessment years that were covered in the said settlement pertain to assessment years (A.Y.) 2013-14 to 2016-17. 27. It is noted that the year under consideration relates to A.Y.2017-18 which was not covered by the proceedings under Chapter XIX-A of the Act. Therefore, in the scrutiny assessment the AO considering the records and the deposition of the person searched, an order u/s. 143(3) of the Act was passed for the A.Y.2017-18 on 28.12.2018 added Rs. 88,61,16,500/- to the income declared of Rs. 4,81,06,900/- in the return of income filed by the assessee. The first addition was made on protective basis on account of shortfall in declaration in the total quantum of income offered to tax spread across five assessment years from A.Y. 2013-14 to 2017-18 was lesser by Rs. 54,61,00,000/- in comparison to the total quantum disclosed u/s. 132(4) of the Act of Rs. 325.00 crores. 28. The other addition is in respect of the SBNs deposited of Rs. 32,00,16,500/-during the period of demonetisation, a....