Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2009 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2009 (9) TMI 637 - AT - Income TaxReopening - Income escaping assessment - Disallowance u/s 40(b) - Computation of book profit for the payment of remuneration to partners - Inclusion of Interest on IT refund and FDR - Business income or other sources - Held that: - we are satisfied that the AO could have had such belief and therefore, the learned CIT(A) rightly has upheld the action under s. 147, with which, we are also in agreement as this Bench has already been taking a consistent view that any interest income on the funds placed with the banks and the interest earned thereon, should be taxed only under the head income from other sources and not as business income especially when earning of interest is undisputedly not the business of the assessee. - Reopening of assessee held as valid Regarding remuneration made under s. 40(b) - computation of book profit - The AO was required to have computed the book profit as per the specific definition given under Expln. 3 below s. 40(b). Consequently therefore, the interest income of Rs. 7,63,997 be not excluded and the net profit as declared by the appellant be considered. - decided in favor of assessee. Regarding dis allwance of traveling expenses - What the learned AO alleged appears to be a suspicion without substantiating it. No specific instance of disallowable nature in the claimed travelling expense, has been shown. The impugned disallowance is hereby deleted.
|