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2012 (8) TMI 799 - AT - Income TaxAddition on account of undisclosed brokerage income received on sale of land not offered for tax – assessee contended that income was earned by sister concern of the assessee M/s. SPL, however records reveal that SPL as not engaged in brokerage business and did not had requisite manpower – Held that:- It is found from record that brokerage income was received by the assessee in respect of services rendered by it for sale of land. All the work relating to brokerage income was undertaken by the assessee company, but this income was not offered in the return of income. Mere entering of MOU between the assessee and its sister concern SPL will not allow the assessee to divert its income to the sister concern. Since the rendering of services for which income was not only accrued but also received by the assessee, we do not see any reason for not offering the same in assessee’s hands. It was actual income of the assessee, therefore, the AO was justified in making addition of income actually earned and received by the assessee during the year under consideration. Merely because this income was offered by SPL in its return of income will not exonerate the assessee from inclusion of such income in its return which was earned and received by it – Decided against assessee
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