DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1(4), CHENNAI, CHENNAI vs. PERIYASAMY ANBUNATHAN, KARUR

ITA 1536/CHNY/2025Status: DisposedITAT Chennai23 January 202644 pages
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What did the Tribunal hold?

The Tribunal held that the principle of telescoping allows for the same income not to be taxed twice. Therefore, the unaccounted income offered by the assessee could be telescoped against the seized cash, confirming the deletion of the addition by the CIT(A).

What were the facts?

During a search, unaccounted cash and account books were seized. The assessee made several contradictory statements regarding the source and ownership of the funds and entries, eventually admitting to unaccounted income. The Assessing Officer made additions based on these findings.

What were the issues?

Whether unaccounted income offered by the assessee can be telescoped against seized cash to avoid double taxation. Whether protective additions made in the hands of the assessee are sustainable when substantive additions were made in the hands of another person.

Which sections of the Income-tax Act were involved?

Section 132,Section 131,Section 153A,Section 142(1)

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Cases cited in this judgment(23)Show list

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Cause title — parties, addresses and appearances
ITA No.1488/Chny/2025 (AY 2015-16) & Others Periyasamy Anbunathan :: 2 ::

PER BENCH: These appeals preferred by the Revenue arise from the orders passed by the Learned Commissioner of Income Tax (Appeals)-18 (hereinafter referred to as Ld.CIT(A)'), Chennai, dated 29.03.2025 for Assessment Years (hereinafter referred to as AY') 2014-15 to 2017-18 u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'). The assessee has preferred appeals and cross objections in relation to the order(s) passed by the Ld. CIT(A) for AYs 2015-16 & 2016-17. 2. Since issues involved are common, all the appeals for all the AYS were heard together. Both the parties also argued them together raising similar arguments on these issues. Accordingly, for the sake of convenience and brevity, we dispose all the appeals by this consolidated order.

3.

Before we advert to the grounds taken in the cross-appeals, it would first be relevant to cull out the basic background facts of the case. Search was conducted u/s 132 of the Act upon the assessee on 22.04.2016 in the course of which, inter alia, six (6) account book(s) were found and seized vide ANN/FAY/CPA/B&D/S-1 and also cash of Rs

The order continues below.

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