The assessee, Narayana Reddy Vakati is the Managing Director of M/s VNR Infrastructure Ltd, having income from salary from the company and other sources. Search and seizure operations were conducted in the case of M/s VNR Infrastructures Ltd and also in the case of its Managing Directors and other Directors. During the course of search certain incriminating material pertaining to the company was found at the premises of M/s. VNR Infrastructures Ltd, statement of the Managing Director and the other director and also the statements of other persons were recorded under section 132(4). During the course of the statement the Managing Director Narayan Reddy.
The Revenue’s substantive grievance in all these five assessment years plead that the CIT(A) has erred in law and on facts in reversing the Assessing Officer’s action adding unexplained expenditure of Rs.2,55,20,578; Rs.2,22,10,994; Rs.43,94,74,187; Rs.6,53,44,000 and Rs.7,09,61,473 (assessment year-wise) and unexplained income addition of Rs.1 Crore in A.Y. 2013-14 and Rs.2.10 Crore and Rs.4,99,61,473 in A.Y. 2014-15; respectively alleged based on the assessee’s statement recorded during the course of search.
It emerges from a perusal of CIT(A) lower appellate discussion that he has deleted all the impugned twin additions of undisclosed unaccounted expenditure and undisclosed income (supra) for the sole reason that they pertain to assessee’s company M/s. VNR Infrastructure Limited and duly stand assessed in the latter’s hands.
The Coram of Laxmi Prasad Sahu and S.S.Godara concluded that the CIT(A) has rightly deleted these twin additions in the assessee/individual’s hands since corresponding undisclosed and unaccounted income pertains to its company M/s. VNR Infrastructure Limited carrying out the business in its own name. The ITAT clarified that the Revenue has not even indicated the fact above the company’s assessment qua the very incomes.Subscribe Taxscan AdFree to view the Judgment