J.S. ANANTH vs. ACIT, BANGALORE

It is the case of the assessee that the AO has made an addition of Rs.10 lakhs on account of marriage expenses of the assessee’s son, J. S. Santosh, on the ground that the same is not shown in the return of income filed by the appellant. A search was carried out u/s.132 of the Act, in the premises of the assessee along with others of Sudarshan Silks group on 11.10.2007, during the course of which various documents were found and seized. Notice u/s.153A was issued in response to which assessee filed the return. It was the case of the ITA.329/Bang/2013 Page - 3 assessee that the amount for which addition was made by the AO was part of the surrender made by Sudarshan Silks of which the assessee was a partner and duly accounted for the same in the surrender amount of Rs.3.04 crores. It was further contended that once the amount has been surrendered by the firm of the assessee, it cannot be added again in the hands of the individual assessee. Aggrieved by the addition made by the AO, assessee filed an appeal before the CIT (A), who confirmed the order of the AO. Further aggrieved the assessee is in appeal before us.

Before us, the Ld. AR made the submissions and pleaded that the addition is to be deleted.

On the other hand the Ld. DR vehemently argued that the authorities have given cogent reason for making the addition and therefore the appeal of the assessee is devoid of merit and is required to be dismissed.

We have heard the rival contentions and perused the material on record. The assessee has submitted that the amount of Rs.10 lakhs was included in the admitted amount of Rs.3.04 crores as per the letter dt.06.12.2007. There is no dispute on this aspect because as per the order of the CIT (A) rendered in the case of Sudarshan Silks, dt.26.09.2011 for AYs. 2004-05 to 1008-09, it was noted by the CIT (A), in para 5.91 that there is an amount declared of Rs.3,04,25,500/- including the amount of Rs.10 lakhs on account of unaccounted amounts spent on the marriage of Santosh. The discussion on this ITA.329/Bang/2013 Page - 4 issue by the CIT (A) as in para 5.9.3 of the order (supra) is reproduced below for the sake of ready reference :

From the above extract from the order of the CIT (A), it is clear that the amount of Rs.55,29,600/- which is inclusive of the amount of Rs.10 lakhs is to be considered in the hands of the partner, i.e., the present assessee, as per the present assessment order in the hands of the assessee before us. It is seen that neither any amount has been declared as income on this account nor any separate addition was made by the AO on this account, apart from making an addition of Rs.10 lakhs in the hands of the assessee. In view of the above, we are of the considered opinion that no interference is called for in the order of the CIT (A) on this issue. We uphold the order of the CIT(A).

In the result, appeal of the assessee is dismissed.