SHYAM SUNDAR POLISETTY ,GUNTUR vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1, GUNTUR

ITA 266/VIZ/2023Status: DisposedITAT Visakhapatnam28 February 2024AY 2019-20Bench: SHRI DUVVURU RL REDDY, HON’BLE (Judicial Member), SHRI S BALAKRISHNAN, HON’BLE (Accountant Member)12 pages
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What did the Tribunal hold?

The Tribunal held that taxing the same amount in the hands of the partner when it was already taxed in the hands of the firm would amount to double taxation. Therefore, the addition made on a protective basis in the hands of the assessee was directed to be deleted.

What were the facts?

During a search operation, the assessee was found to have received significant cash amounts from a firm where he was a managing partner, which were not recorded in his books. The Assessing Officer made additions on a protective and substantive basis, treating these withdrawals as income.

What were the issues?

Whether cash transactions between a partner and a firm, not recorded in the partner's books, can be taxed in the partner's hands when already taxed in the firm's hands. Whether the addition made on a protective basis is justified when the same income is substantively taxed elsewhere.

Which sections of the Income-tax Act were involved?

Section 132,Section 133A,Section 153A,Section 143(3),Section 142(1),Section 40A(3),Section 269SS,Section 269T

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM

Before: SHRI DUVVURU RL REDDY, HON’BLE & SHRI S BALAKRISHNAN, HON’BLE

For Respondent: Dr. Satyasai Rath, CIT-DR
Hearing: 13/02/2024

PER BENCH:

All the captioned appeals are filed by the assessee against the orders of the Ld. Commissioner of Income Tax (Appeals)-3, Visakhapatnam [Ld. CIT(A)] in the following DIN & Order Nos.

Sl DIN & Order No. Date of order AY No 1 ITBA/APL/S/250/2023-24/1054062901(1) 30/6/2023 2013-14 2 ITBA/APL/S/250/2023-24/1054063437(1) 30/6/2023 2014-15 3 ITBA/APL/S/250/2023-24/105406374

The order continues below.

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