The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) last week confirmed the addition against famous Indian Actress Priyanka Chopra .
While sustaining the additions made by the department in consequent to search proceedings, the bench clarified that the additions made on basis of identified loose papers seized during search is valid since the same has been admitted by assessee during assessment.
In an appeal preferred by the assessee, she challenged the order of the first appellate authority who confirmed the addition of Rs.6 lacs being alleged unaccounted income in respect of rent receipt in cash from Shivani Oil and Gas Exploration.
She argued before the Tribunal that the addition was merely based on loose papers seized by the authorities in which there was scribbling found for the cash component of the rent receipt.
The bench noted that the assessee admitted the ground during the assessment proceedings.
Confirming the addition, the bench observed that the Assessing Officer has clearly given a finding that the income against which the assessee wants them to be telescoped related to separate piece of loose papers and they have nothing to do with the seized paper with reference to which this addition has been made.
“Now the assessee is submitting that there has been no such rent receipt in cash. Merely making such a statement will not support the case of the assessee when incriminating material has been found. Furthermore, the assessee pleas that the assessee follows cash system of accounting. This also does not helps the case of the assessee. The assessment being based upon specifically identified loose paper which the assessee has duly agreed during the course of assessment cannot be said to be arbitrary,” the bench said.
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