Mr. A gave Rs. 30,00,000 to Mr. B which was deposited by Mr. B in his saving abnk account and futher transfered to Mr. A through banking channel.

cases of both the assessee (Mr. A & Mr. B) were selected for scrutiny. now Mr. A aggreed to the addition of Rs. 30,00,000 in his income and pay the taxes.

now in case of Mr. B :- AO asking for the additon of same amount to the income of Mr. B. now Mr. B contention is that Rs. 30,00,000 has been already taxed in the hands of Mr. A and that amount cannot be added in his income because it leads to double taxation.

i need som eclarification and supporting case laws in favour of Mr. B 

Dear Kunal,

Same income should not be taxed in the hands of two people. Either it can be taxed in the hands of A or in the hands of B.

Pl read the latest judgment by Rajasthan High Court which says the same at below link.

http://taxreply.com/article/HC__Same_income_cannot_be_taxed_in_the_hands_of_two_people_-_one_on_substantive_basis_and_other_on_protective_basis-299.html

If you have any question, Pl post the same.

Kind Regards
TaxReply.com