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2011 (4) TMI 282 - AT - Income TaxAddition - Exemption u/s 10(23C)(vi) - Search and seizure u/s 132 - unexplained expenditure u/s 69C - An addition of sum of Rs. 9,50,652 for the assessment year 2004-05 and Rs. 10,37,069 for the assessment year 2005-06 was made on account of non-recording of cash payment of rent to the land lord - Held that:- when the expenditure was not recorded in the books of account and the assessee failed to offer satisfactory explanation about the nature and source of such expenditure, it is the deemed income of the assessee, such deemed income did not fall under the head income, of 'profits and gains of business or profession' - Hence, the CIT(A) was not justified in holding that the assessee is eligible exemption under section 10(23C)(iiiad) of the IT Act - Decided against of assessee. Application of provisions of section 14 on additions as deemed income - Held that: - in these cases, the source not being known, such deemed income will not fall even under the head 'income from other sources'. Therefore, the corresponding deductions which are applicable to the incomes under any of these various heads, will not be attracted in the case of deemed income which are covered under the provisions of sections 69, 69A, 69B and 69C of the Act in view of the scheme of those provisions.
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