Log In

| Recover password


Here is a case of a real estate dealer reported at [2021] 434 ITR 97 (Kar) in whose case the search revealed unexplained investment in cash for the purchase of agricultural land and development expenses based on indiscriminating evidence found. Such amounts aggregating to 66 lacs formed part of additions in his assessment on one to one basis.


The assessee made ground before the Court for telescoping of expenses ( meaning nexus) of Rs. 66 lacs against income declared of Rs. 50,00,000 . He claimed that since he has surrendered a sum of Rs. 50.00 lakhs out of the expenditure that income should be considered as available in his hands, which can be justified as being used for alleged unexplained investment.


To further strengthen their point the counsel for the assessee made reference to the judgment of the Supreme Court in J. K. Industries Ltd. v. Union of India [2008] 297 ITR 176 (SC) ; [2007] 13 SCC 673 so as to seek entitlement to the benefit of matching principle.


Further upon any plea of telescoping of the income/matching during the assessment the revenue cannot plead that the assessee has accepted that it had concealed its income following [1979] 119 ITR 497 (Pat).

Leave a Reply

Your email address will not be published.

error: Do not copy the content of this website.