Question raised before the High Court was \u201c whether the Income tax Appellate Tribunal was correct in law deleting the undisclosed income of the Assessee as recoded by the Securities and Exchange Commission in USA ?\u201d<\/p>\n
High Court reversed the order of the Tribunal placing reliance on two letters written by the assessee and assumed that it was in the form of admission of non -disclosure\u00a0 and an offer was given by the assessee to pay tax and penalty as the case may be .\u00a0 Reversing the order of the High Court the Supreme Court held that,\u00a0 a letter written in rebuttal \u00a0of allegations contained in a news items with a without-prejudice offer cannot be treated as admission of non-disclosure or as an unconditional offer to pay tax. Also, the disclosure is by the USA Co and not by the assessee. It is not the case of the Dept that the amount has been received in the accounts of the assessee or spent for and on behalf of the assessee so as to be treated as undisclosed income of the assessee.<\/strong> (Note : Order in CIT v\u00a0 Goodyera India Ltd\u00a0 ( Delhi) (HC) (ITA No 223 of 2005 dt 28 -04 2008)\u00a0 is set aside . ( CA Nos. 7703-7707 of \u00a02012, dt. 16.10.2019) (AY. 1972 -73 to 1976 -77)<\/p>\n","protected":false},"excerpt":{"rendered":" S. 143(3): Assessment – Method of accounting -Undisclosed income \u2013 Admission by a letter without-prejudice offer cannot be treated as admission of non-disclosure or as an unconditional offer to pay tax. Also, the disclosure is by the USA Co and not by the assessee- It is not the case of the Dept that the amount has been received in the accounts of the assessee or spent for and on behalf of the assessee so as to be treated as undisclosed income of the assessee. [ S.69, 145 ]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-8118","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-26W","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/8118","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=8118"}],"version-history":[{"count":5,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/8118\/revisions"}],"predecessor-version":[{"id":10428,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/8118\/revisions\/10428"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=8118"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=8118"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=8118"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}