TMI Blog2023 (6) TMI 281X X X X Extracts X X X X X X X X Extracts X X X X ..... tal activity as prescribed in Rule 11 R of the Income Tax Rules. No other option than to confirm the order passed by the Ld. CIT(A) who has fairly estimated 10% of the misc. receipts as taxable income of the assessee. Thus the findings arrived by the Ld. CIT(A) does not require any interference and the ground raised by the Assessee is hereby rejected. Unexplained cash credit u/s. 68 - HELD THAT: Here also the assessee has not provided any documentary evidence that the loan creditor is a NRI and the bank details of the NRI and repayment details by the assessee. Thus the assessee failed to prove the identity of the creditor itself, we have no hesitation in confirming the addition made by the CIT(A). The ground raised by the Assessee i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re proceeding to dispose of the above appeal with the assistance of Ld. CIT-DR 5. The brief facts of the case is that the assessee is the owner of Ships, Charterers and engaged in the business of shipping dredging marine contractor. For the Assessment Year 2006-07, the assessee filed its Return of Income declaring total income of Rs. 9,62,032/-, the return was taken up for scrutiny assessment. The Assessing Officer found that the assessee has shown Rs. 1,38,06,641/- as miscellaneous receipts during the year, which is more than ten times that of the previous year. The assessee was asked to explain why the misc. receipt should not be charged to tax under the normal provisions of the Income Tax, other than Special provisions related to in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... receipts cannot be totally taxed. However there was no details of expenditure incurred by the assessee for earning the above misc. income. But the assessee has returned Net Profit percentage of 2.7% for the earlier Assessment Year 2005-06 and 5.87% for the present Assessment Year 2006-07. Thus the Ld. CIT(A) estimated 10% of the misc. receipts as taxable net profit and therefore confirmed the addition to Rs. 13,80,664/- and partly allowed the ground. 7.1. Regarding the addition of unsecured loan of Rs.40,00,000/-. The Ld. CIT(A) held that prima facie the assessee has to satisfy basic three parameters namely identity, creditworthiness of the creditors and genuineness of the transaction is to be proved by the assessee. Here in this case, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and maritime fees. The appellant carried out various activities under the head 'Misc. Activities, like 'on shore repairs of tugs with the help of qualifying ships, transport of bunkers, charter, etc. Therefore, the appellant contended that the income was earned with the operation of qualifying ships. The AO stated that these activities were not covered either under the core activities, or incidental activities, and therefore, the whole Misc. Income was to be taxed separately. (ca) I found from the records that the appellant carried out various operations with the help of qualifying ships, but these activities were not dredging activities which form the core activity of the appellant company and these operations could not be tak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en found subject of undisclosed sales. Therefore, no question of law which requires to be referred to this Court arises out of Tribunals order. The order of Tribunal under s. 256(1) is not erroneous in reaching such conclusion. (cc) On the basis of above decision, it is quite clear that the gross receipts cannot be totally taxed. The appellant maintained books of accounts audited under the Companies Act and under Income Tax Act. The corresponding expenses for earning this Misc. Income were also debited in the profit and loss account. Thus, only net profit of such income is to be separately taxed. There is no finding to the effect that the expenses to earn these miscellaneous receipts were not accounted or disclosed. In the absence of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... receipts as taxable income of the assessee. Thus the findings arrived by the Ld. CIT(A) does not require any interference and the ground raised by the Assessee is hereby rejected. 10. Ground no. 2 addition on account of unexplained cash credit u/s. 68 of the Act. Here also the assessee has not provided any documentary evidence that the loan creditor is a NRI and the bank details of the NRI and repayment details by the assessee. Thus the assessee failed to prove the identity of the creditor itself, we have no hesitation in confirming the addition made by the Ld. CIT(A). Thus the ground raised by the Assessee is devoid of merit and the same is dismissed. 11. In the result, the appeal filed by the Assessee is hereby dismissed. Order ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
