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2013 (11) TMI 472 - ITAT AHMEDABADUnexplained expenditure u/s 69C of the Income Tax Act – detection of income and unexplained expenditure during survey - Held that:- The appellant had made disclosure of income of Rs.42,00,000/- during the course of survey, it means additional income after all deductions - The total disclosure made by the appellant is unaccounted income which has been detected by the department and admitted by the assessee. Therefore, it is a deeming income to the extent of Rs.22,35,685/- u/s.69C of the IT Act, as the assessee has not explained the source of these expenses – Decided in favor of Revnue. Rejection of books of accounts u/s 145(3) – Held that:- Rejection of books of account u/s.145 is justifiable as two diaries in which unaccounted payments to the partner and unaccounted expenses recorded, were found – Decided in favor of Revenue. Allowance of remuneration and interest to the working partners u/s.40(b) of the I T Act – Held that:- Section 40A is not applicable to payments covered by Section 40(b) of the Income Tax Act. - Following the judgments in the case of CIT vs. Yoganand Textiles [1991 (9) TMI 14 - GUJARAT High Court] and DCIT Circle-6, Surat vs. Om Terrace [2013 (9) TMI 118 - ITAT AHMEDABAD], claim of deduction in regard to interest and remuneration is allowed – Decided against the Revenue.
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